Britain's economy grew faster than first reported in the second quarter, with the Office for National Statistics revising GDP growth up to 0.5% from an initial 0.4%. The upgrade is a boost for Prime Minister Andy Burnham ahead of next month's Budget.
The UK's economy expanded 0.5% in the April-to-June period, beating a 0.4% forecast, the ONS said on Wednesday. That compares with 0.6% growth in the first quarter. The services sector expanded 0.6%, up from an initial estimate of 0.5%, and was the main driver of the upward revision.
Exports and investment lift growth
Net trade provided the biggest boost to expenditure, with export volumes rising 2.8%, including a 3.7% increase in goods exports and a 2.0% rise in services exports. Business investment was revised up to 1.8% growth on the quarter. It also stood 5.2% higher than a year earlier, up from an initial estimate of 0.8%.
Household spending rose 0.3%, while government consumption fell 0.5%, largely reflecting lower education activity after some schools closed during June's heatwave. Real household disposable income per head rose 1.0% to £6,577, the biggest jump since the end of 2024, reversing a 0.8% fall in the first quarter. The household saving ratio increased to 8.8% from 8.6%.
Britain leads the G7
Britain was the fastest-growing economy among the Group of Seven advanced economies in the first half of 2026. Among its peers, second-quarter growth was 0.8% in Canada, 0.4% in the United States and Japan, 0.3% in Germany, 0.2% in Italy and zero in France, according to the same ONS figures.
Britain's current account also improved, with the deficit narrowing to £19.9 billion ($26.4 billion), smaller than the £24.7 billion consensus forecast, helped by strong growth in services exports.
This upgraded GDP print arrives ahead of Chancellor John Healey's October 28 Budget.
Sources: Financial Times, Investing.com, Investing.com
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