Weekly Market Update: 26 September 2025
Andrea Wood · Posted on: September 26th 2025 · read
According to data released by the Bureau of Economic Analysis on Thursday, the U.S. economy grew faster than previously estimated in Q2 2025, with GDP revised up to 3.8% from 3.3%. The boost was driven by strong consumer spending and a narrowing trade deficit, though economists warn the latter may distort underlying strength.
The data has tempered expectations for further interest rate cuts from the Federal Reserve, as inflation remains sticky and growth appears resilient. Markets responded with mixed signals, bond yields rose, while equities were flat, highlighting investor uncertainty about the Fed’s next move.
The U.S. economy grew faster than previously estimated in Q2 2025, with GDP revised up to 3.8% from 3.3%.
In corporate news, global giants Starbucks and Bosch have unveiled sweeping restructuring plans that will result in significant job losses. Starbucks is closing around 1% of its North American stores and eliminating 900 corporate roles as part of its £750 million “Back to Starbucks” turnaround strategy. In the UK, several locations are also set to shut down following a portfolio review, putting jobs at risk. Meanwhile, Bosch announced it will cut 13,000 jobs globally, primarily in its auto parts and software division, citing weak demand and the slow transition to electric vehicles. The German auto supplier is pivoting toward semiconductor production, restructuring its Reutlingen plant to focus on future technologies. These moves reflect broader pressures facing legacy brands as they adapt to shifting consumer habits and technological disruption.
The UK continues to grapple with the highest inflation rate among G7 nations, with the OECD raising its prediction for UK inflation to 3.5% across 2025.
The UK continues to grapple with the highest inflation rate among G7 nations, with the Organization for Economic Co-operation and Development (OECD) raising its prediction for UK inflation to 3.5% across 2025. This remains well above the Bank of England’s 2% target and higher than forecast inflation in the US, Germany, and Japan.
Our specialist's final thought
"In better news for Sir Kier Stamer’s embattled Labour government, the OECD predicted UK growth of 1.4% this year, the second-fastest amongst G7 countries. It did, however, forecast a slowdown in growth to 1% for 2026, putting the UK behind the US, Germany and Canada, with inflation easing back to 2.7%."
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