UK economy grows 0.5% in second quarter as GDP revised upwards

The UK economy grew by 0.5% in the second quarter of 2026, slightly faster than previously estimated, as stronger services activity lifted growth despite continued economic and geopolitical pressures.

The Office for National Statistics (ONS) revised its estimate for GDP growth between April and June upwards by 0.1 percentage points from its initial estimate of 0.4%. This followed unrevised growth of 0.6% during the first three months of the year.

The revision means the UK economy was 2.0% larger in the second quarter than it was in the final three months of 2024, up from the previous estimate of 1.9%.

Services, which account for the majority of UK economic activity, grew by 0.6% during the quarter, revised upwards from an initial estimate of 0.5%. Construction output increased by 0.8%, while production fell by 0.1%.

Liz McKeown, ONS Director of Economic Statistics, said: “Today’s figures include our annual improvements to the measurement of the economy, incorporating new information that provides a better picture of activity across the UK’s service sector, alongside the usual inclusion of updated and improved data sources.

“Growth for 2025 as a whole was a little lower than previously estimated, with the profile of growth across the quarters also revised.

“However, stronger services growth in the latest quarter means the economy is now slightly larger than previously estimated.”

The ONS revised down its estimate for economic growth across 2025 as a whole by 0.1 percentage points to 1.2%.

The latest national accounts also showed an improvement in household finances during the second quarter. Real household disposable income per head increased by 1.0%, following a 0.8% decline during the first quarter.

The household saving ratio increased by 0.2 percentage points to 8.8%, driven by a rise in non-pension saving.

Meanwhile, the UK’s borrowing position with the rest of the world decreased slightly to 2.8% of GDP, compared with 2.9% during the first quarter.

Business investment was also stronger than previously estimated, increasing by 1.8% compared with the previous three months.

He said: “At a time when the geopolitical temperature is rising, today’s slight rise in GDP offers a welcome sign of resilience, with the economy edging forward despite a challenging backdrop. However, it is hard to view these figures as a reason for complacency.

“Growth remains modest, and the daily reality for business owners is still one of higher operating and financing costs, as well as subdued business investment.

“The time for warm words is over. Businesses are looking to the Government to make good its commitments to support small businesses. From access to finance to managing fuel costs, real growth for UK PLC depends on taking action to strengthen business confidence and creating an environment where SMEs want to invest and hire.”