UK Economic Growth Slows as Corporate Giants Make Strategic Moves
The United Kingdom’s economy has shown signs of cooling, with final figures from the Office for National Statistics (ONS) confirming a slowdown in the second quarter of 2025. This moderation in growth comes as major corporations on the London Stock Exchange announce significant strategic shifts, highlighting a dynamic but challenging economic landscape.
Economic Momentum Cools in Second Quarter
The UK’s Gross Domestic Product (GDP) grew by 0.3% between April and June 2025, a marked deceleration from the robust 0.7% expansion recorded in the first quarter of the year. The figures suggest that the stronger performance at the start of the year was partly temporary, with the economy now entering a more moderate phase.
Despite the quarterly slowdown, the year-on-year growth rate increased slightly to 1.4%. The ONS also noted that the UK’s GDP is now 2.9% higher than it was at the end of 2023, indicating a sustained, albeit slower, positive trajectory.
| Quarter | Quarterly Growth | Year-on-Year Growth |
| Q1 2025 | +0.7% | +1.2% |
| Q2 2025 | +0.3% | +1.4% |
Services Buoy Economy as Industry Falters
A stark contrast was evident across different sectors of the economy. The dominant services sector continued to drive growth, expanding by 0.4%, though this was a slower pace than the 0.7% seen in the previous quarter. In contrast, industrial production contracted by 0.8%, weighed down by a downturn in manufacturing and weaker foreign demand. The construction sector provided a bright spot, rebounding with 1% growth.
Looking ahead, the Bank of England projects an overall growth rate of approximately 1.25% for the full year. This forecast will be heavily influenced by trends in consumer spending, business investment, and ongoing monetary policy decisions.
AstraZeneca Eyes New York Listing
In a significant corporate development, Anglo-Swedish pharmaceutical giant AstraZeneca has announced plans to list its ordinary shares directly on the New York Stock Exchange (NYSE). The move, aimed at attracting a wider pool of global investors, will see the company harmonise its listings in London, Stockholm, and New York.
To facilitate this, AstraZeneca will replace its existing American Depositary Receipts (ADRs) on the Nasdaq. The company confirmed its commitment to maintaining its headquarters in the UK. “The Board of AstraZeneca recommends a Harmonised Listing Structure… to allow us to reach a greater variety of global investors,” stated Chairman Michel Demaré. In response to the news, AstraZeneca’s shares on the FTSE 100 saw a modest rise of 0.71%.
Speculation Mounts Over Potential London Exit
The announcement follows persistent speculation that AstraZeneca, one of the largest companies on the London Stock Exchange, might eventually shift its primary listing to the US. Analysts suggest this move keeps that option open for the future.
“While it’s a logical step to switch to a direct US listing… it at least hints at the possibility of a more drastic change down the line,” commented Russ Mould, investment director at AJ Bell. A direct NYSE listing streamlines the process for US investors, removing the additional costs and administrative hurdles associated with ADRs.
Prysmian Tapped for £1.7 Billion UK Power Link
Meanwhile, demonstrating continued foreign investment in UK infrastructure, the Italian cable group Prysmian has been selected as the preferred bidder for a major energy project. UK grid operators SP Transmission and National Grid have tapped Prysmian for the “Eastern Green Link 4,” a subsea power connection between Scotland and England.
The contract is estimated to be worth around €2 billion (£1.7 billion), according to a statement from the Italian firm. The project involves laying a high-voltage direct current (HVDC) cable under the North Sea, from Fife in eastern Scotland to Norfolk on the east coast of England. This initiative is part of a series of projects, including “Eastern Green Link 1” and “2” in which Prysmian is also involved, aimed at strengthening the UK’s electricity grid.
