“Economic activity is expected to slow in the second half of the year as the temporary factors which pushed up growth in the first half of 2025 begin to fade. Additionally, the later date of the Autumn Budget could prolong some uncertainties for businesses, delaying investment decisions and acting as a drag on growth until more clarity emerges.
The outlook for consumer spending remains weak despite households maintaining relatively healthy balance sheets, as a weakening labour market and higher costs constrain discretionary spending. With sources of growth set to remain limited over the coming months, the Autumn Budget provides the government with an opportunity to set out credible supply-side policies that can boost long-term growth while supporting a near term recovery in sentiment.
The UK economy stalled in July, with growth coming in at 0%, despite output rising in the construction and services sectors. However, this was offset by a sharp fall in manufacturing output. A reversal in fortune appears unlikely for the sector with global headwinds set to persist.”
-ENDS-
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About KPMG :
KPMG LLP, a UK limited liability partnership, operates across the UK with approximately 17,000 partners and staff. The UK firm recorded a revenue of £2.99 billion in the year ended 30 September 2024.
KPMG is a global organisation of independent professional services firms providing Audit, Legal, Tax and Advisory services. It operates in 143 countries and territories with more than 275,000 partners and employees working in member firms around the world. Each KPMG firm is a legally distinct and separate entity and describes itself as such. KPMG International Limited is a private English company limited by guarantee. KPMG International Limited and its related entities do not provide services to clients .