UK economic growth revised up to 0.5% in Q2

Britain's economy expanded 0.5% in the second quarter, surpassing an earlier estimate of 0.4%, according to revised data released on Wednesday. The Office for National Statistics (ONS) attributed the improvement to stronger services growth in the April-June period, which led to a slightly larger economy than previously estimated.

The economic growth, however, still represents a slowdown from the 0.6% expansion recorded in the first quarter. Finance Minister John Healey, who will present the annual budget on October 28, has pledged to adhere to strict fiscal discipline amid rising inflation and multi-decade-high government bond yields.

Inflation and high borrowing costs are putting pressure on the government, according to the ONS director of economic statistics, Liz McKeown. With households and businesses grappling with the cooling labor market and high costs, the outlook for economic growth has become more uncertain since the second quarter, noted Richard Carter, head of fixed interest research at Quilter Cheviot.