The UK economy has shown modest signs of growth in the second quarter of 2025, with GDP rising by 0.4%. The improvement is largely driven by stronger consumer spending and a rebound in the service sector.
However, households continue to feel the pinch from high food and energy prices. The Bank of England has maintained interest rates at 5%, signalling that inflation remains a concern.
Analysts say the recovery is fragile, with businesses warning that further uncertainty could stall momentum. The government, meanwhile, is facing pressure to deliver a clearer long-term growth strategy.
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