Growth in the UK economy slowed to 0.3% in the second quarter of this year, new official figures show.
However, the figure was stronger than the 0.1% level widely expected by economists after an uptick in activity in June and revised data for earlier in the quarter.
Chancellor Rachel Reeves said the figures "show that the economy beat expectations in the second quarter of this year".
The Office for National Statistics (ONS) said gross domestic product (GDP) grew by 0.3% for the quarter, after 0.7% growth in the first three months of the year.
It came after the economy grew by 0.4% in June.
Speaking at a construction site in Doncaster, the Chancellor said "there's still more to do to make sure that people in all parts of the country benefit" from growth.
She said: "We are the fastest-growing economy in the G7 for the first half of this year, with a GDP growth of 0.3% this quarter, and that's after GDP growth of 0.7% the quarter before that.
GDP grew 0.3% in Quarter 2 (April to June) 2025.
— Office for National Statistics (ONS) (@ONS) August 14, 2025
Services (+0.4%) and construction (+1.2%) both grew but production (-0.3%) fell.
Read more ➡️ https://t.co/Retnw5VOYU pic.twitter.com/iCmUHU9Ynr
"I recognise there's still more to do to make sure that people in all parts of the country benefit from that growth, but since the general election, when I became Chancellor, the economy has grown by 1.2% and GDP per capita - so for every person in the country - GDP per capita is up by 0.7%.
"So, encouraging numbers today but, of course, we need to build on that to make sure people in all parts of the country are better-off."
ONS director of economic statistics Liz McKeown said: "Growth slowed in the second quarter after a strong start to the year.
"The economy was weak across April and May, with some activity having been brought forward to February and March ahead of stamp duty and tariff changes, but then recovered strongly in June.
"Across the second quarter as a whole, growth was led by services, with computer programming, health and vehicle leasing growing."
Growth in June was also stronger than expected, bouncing back after two consecutive months of decline.
The month was boosted by a "strong" performance for scientific research and development, engineering and car sales.
Within the production sector, there was a strong growth in the manufacturing of electronics.
June's 0.4% reading comes after the economy contracted by 0.1% in both April and May.
The ONS confirmed that April's economic decline was weaker than expected after receiving more data, having originally estimated a drop of 0.3% for the month.
Ms Reeves said: "Today's economic figures are positive with a strong start to the year and continued growth in the second quarter.
"But there is more to do to deliver an economy that works for working people."
The slowdown in the economy could increase the likelihood of interest rate cuts by the Bank of England, but will also pose a challenge for Ms Reeves, who has hoped that accelerating growth can help support Government spending plans.
Sanjay Raja, Deutsche Bank's chief UK economist, said: "Against wide expectations that the economy would just about stall in the second quarter, the UK economy surpassed our forecasts yet again.
"Underneath the surface though, there's much to be desired. The biggest contributor to GDP growth came via government spending.
"What disappointed? For starters, household spending - the growth engine of the UK economy nearly stalled, coming in at a paltry 0.1% quarter-on-quarter."
