UK economic output revised up to show stronger Q2 growth

Britain's economy experienced a stronger growth in the second quarter than previously estimated, according to data released by the Office for National Statistics. The economy expanded by 0.5% in the April-to-June period, slightly surpassing the initial estimate of 0.4% growth in gross domestic product. This positive outlook could bolster finance minister John Healey's preparations for the October budget.

Economists surveyed by Reuters had anticipated the 0.4% increase in economic output. However, Britain's economy stood out among the Group of Seven major advanced economies, as it was the fastest-growing during the first half of 2026, as per the ONS data.

The real household disposable income per capita saw a significant increase of 1.0% in quarterly terms during the three months to June, marking the largest rise since the end of 2024. This followed a 0.8% decline in the first quarter. Moreover, the ONS revised upward the second-quarter business investment growth to an annual rate of 5.2% from the initial estimate of 0.8%.

Separate balance-of-payments data revealed that Britain ran a smaller current account deficit than economists had predicted for the second quarter, amounting to £19.9 billion ($26.4 billion). This figure was lower than the consensus estimate of £24.7 billion. Excluding precious metals trade, the deficit narrowed to 1.4% of economic output, the smallest reading in five years, supported by robust growth in services exports.