Weekly Market Update: 12 September 2025
Andrea Wood · Posted on: September 12th 2025 · read
According to data released today by the Office for National Statistics (ONS), the UK economy showed zero growth in July, following a 0.4% expansion in June. The three-month average GDP growth stands at 0.2%, with annual growth at 1.4%, slightly below forecasts.
This stagnation reflects subdued consumer spending and ongoing uncertainty in the labour market. Despite the flat GDP print, the FTSE 100 is edging closer to its record high, buoyed by global optimism around potential US rate cuts.
The UK economy showed zero growth in July, following a 0.4% expansion in June.
UK households continue to hold substantial excess cash deposits totaling £614bn, with many opting for high-interest regular savings accounts amid falling inflation and interest rate expectations. Some providers are offering rates as high as 7% AER, with monthly deposit caps ranging from £200 to £500. However, analysts warn that real returns may decline as inflation ticks up and interest rates begin to ease, prompting savers to consider rebalancing toward investments.
UK households continue to hold substantial excess cash deposits totaling £614bn, with many opting for high-interest regular savings accounts amid falling inflation and interest rate expectations.
Gold prices remain elevated, trading around $3,650/oz, as markets anticipate a 25-basis-point rate cut by the US Federal Reserve next week. The rally is driven by weaker US labour data, a softening dollar, and concerns over Fed independence. Analysts suggest gold could reach $3,879 by late September if dovish signals persist.
Our specialist's final thought
"For UK investors, the strength of gold underscores its role as a hedge against both inflation and geopolitical uncertainty."
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