UK Economy Grew 0.5% in Second Quarter, Revised Up From 0.4%

The UK economy grew by 0.5% in the second quarter of 2026, stronger than the 0.4% initially estimated, after updated data lifted the official reading for activity between April and June. The revised figure followed 0.6% growth in the first quarter and leaves real GDP 2.0% above its level in the fourth quarter of 2024, slightly higher than the 1.9% increase previously estimated.

In its quarterly national accounts release, the Office for National Statistics said the 0.1 percentage-point upgrade to second-quarter growth was driven by the output measure of GDP, mainly professional, scientific and technical activities after revised Monthly Business Survey data. The revision does not change the broad picture of a UK economy that expanded in both of the first two quarters of the year, but it does show a somewhat stronger second-quarter performance than the first estimate suggested.

Services data lifted the second-quarter estimate

Services remained the main source of growth. Services output increased by 0.6% in the quarter, revised up from 0.5%, and was 1.7% higher than a year earlier. Business-facing services grew by 0.7%, compared with 0.4% growth for consumer-facing services, and nine of the 14 services subsectors made positive contributions.

The strongest gains came from professional, scientific and technical activities and from information and communication. Professional, scientific and technical output rose 2.3%, including a 5.4% increase in advertising and market research, a 6.7% rise in scientific research and development and 3.3% growth in legal activities. Information and communication increased 2.5%, helped by a 3.6% rise in computer programming, consultancy and related activities.

Not every part of the economy strengthened. Education output fell 0.4%, with the ONS linking the decline in non-market education to some school closures during the June heatwave. Production output slipped 0.1%, compared with an initial estimate of no growth, although manufacturing rose 0.5%. Construction expanded 0.8% during the quarter, with both new work and repair and maintenance increasing, but construction output was still 1.0% below its level a year earlier.

The updated sector detail is important because the upward revision to headline GDP came from the output side rather than from a broad recalibration of every component. The ONS said updated business responses, new Value Added Tax turnover data for the first quarter, seasonal-adjustment reviews and updated industry weights all contributed to revisions across 2025 and 2026.

Exports and business investment strengthened the expenditure picture

Looking at GDP through spending, the ONS estimated that expenditure grew 0.5% in the second quarter, with net trade making the largest contribution. Export volumes rose 2.8%, a substantial revision from the 0.5% increase in the first estimate. Goods exports increased 3.7%, led mainly by fuels, while services exports grew 2.0%, supported by other business services and travel.

Import volumes were flat in the quarter, revised down from an earlier estimate of 0.5% growth. Goods imports fell 0.5%, mainly because of lower machinery and transport equipment imports, while services imports rose 1.0%. Excluding non-monetary gold and other precious metals, which can make the trade data volatile, the trade deficit was estimated at 0.5% of nominal GDP.

Domestic spending gave a more mixed signal. Real household consumption increased 0.3%, with clothing and footwear, restaurants and hotels, and housing among the main positive contributors. Government consumption fell 0.5%, reflecting weaker education activity. Gross fixed capital formation rose 0.9%, while business investment increased 1.8% and was 5.2% higher than in the same quarter of 2025.

Nominal GDP, which is measured at current prices and therefore includes price changes, rose 0.8% in the quarter and was 3.8% higher than a year earlier. The GDP implied deflator, a broad measure of prices across the domestic economy, was 2.4% higher than a year earlier. Those figures sit alongside the real GDP estimate, which strips out price effects to measure changes in the volume of economic activity.

Household income improved as the ONS revised earlier data

The household figures were firmer than in the first quarter. Real GDP per head increased by 0.5% in the second quarter and was 1.2% higher than a year earlier. Real household disposable income per head rose 1.0% after falling 0.8% in the first quarter, reaching £6,577 on the ONS measure. The increase reflected stronger nominal disposable income, partly offset by inflation.

Households also saved a slightly larger share of their resources. The saving ratio rose to 8.8% from 8.6% in the first quarter, driven by an increase in non-pension saving. That measure does not mean every household saved more, but it provides an economy-wide view of the portion of household resources not used for current consumption.

The latest release also revised the recent growth history. GDP growth for 2025 as a whole is now estimated at 1.2%, down 0.1 percentage points from the previous estimate. Across individual quarters from 2025 through the second quarter of 2026, revisions ranged from minus 0.2 percentage points to plus 0.1 percentage points. The ONS said the latest figures incorporate Blue Book 2026 methodological changes and additional data, including new VAT turnover information for the first quarter of 2026.

Early GDP estimates are routinely revised as more complete information becomes available, so the move from 0.4% to 0.5% is better read as an updated measurement than as a new quarter of growth. The next quarterly GDP release is scheduled for November 12, when the ONS is due to publish its first estimate for the July-to-September period. Before then, the agency is scheduled to publish Blue Book 2026 on October 30, providing the fuller annual national accounts framework behind the revised series.