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Business

UK economy grew 0.5% in second quarter, faster than first thought, ONS says

Britain's economy grew 0.5% in the second quarter of 2026, revised up from a first estimate of 0.4% as stronger services growth beat expectations, the ONS said.

By Priya Raman · · 2 min read

Bank junction in the City of London, with the Mansion House and the Bank Underground station entrance visible
Photo: The wub, via Wikimedia Commons

Britain’s economy grew by 0.5% in the April-to-June period of this year, the Office for National Statistics said on Wednesday, faster than its initial estimate of 0.4%. A Reuters poll of economists had forecast the reading for gross domestic product would be left unrevised.

The ONS said stronger growth in the services sector drove the upward revision in its final figures for the second quarter.

Liz McKeown, the ONS’s director of economic statistics, said the data included the agency’s annual improvements to measuring the economy, incorporating new information that gives a better picture of activity across Britain’s service sector, alongside the usual updated data sources. “Stronger services growth in the latest quarter means the economy is now slightly larger than previously estimated,” she said.

But revisions to past data also showed growth was weaker than first thought last year, with 2025 full-year GDP growth put at 1.2%, down from the 1.3% previously recorded. “Growth for 2025 as a whole was a little lower than previously estimated, with the profile of growth across the quarters also revised,” McKeown said.

Today’s figures follow growth of 0.6% in the first quarter, according to The Sun. In slightly more positive news, real household disposable income increased by 1% in the last quarter, after a fall of 0.8% in the first three months of the year.

The Sun reported that the numbers pile pressure on Prime Minister Andy Burnham ahead of next month’s Budget. The paper also reported that estimates suggest Chancellor John Healey needs to fill a £10bn black hole when he presents it.

Richard Carter, head of fixed interest research at Quilter Cheviot, said: “While these figures are somewhat backward-looking, they underline the challenge facing the government. Growth has come in marginally better than initially expected, but it remains difficult to come by as households and businesses contend with high borrowing costs, inflationary pressures and a cooling labour market.”

Sources

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