From 9m ago Introduction: UK economy bigger than first thought after GDP revised higher Good morning, and welcome to our rolling coverage of business, the financial markets and the world economy. The UK economy grew faster than first estimated in the second quarter of the year, despite the disruption caused by the Iran war. UK growth in April-June has been revised to 0.5%, up from the previous estimate of 0.4%, in the latest National Accounts.
That’s a welcome piece of good news for chancellor John Healey, as he draws up the budget due in four week’s time, and means his predecessor Rachel Reeves handed over a slightly larger economy than previously recognised. Growth in Q2 2026 was driven by the services sector (where activity increased by 0.6%) and the construction sector (which grew by 0.8%), while the production sector shrank by 0.1%. However...the Office for National Statistics , which publishes the data, has also revised down its estimate for growth in 2025.
ONS director of economic statistics Liz McKeown said: double quotation mark “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.” A chart showing today’s GDP revisions Photograph: Office for National Statistics The agenda 7am BST: UK national accounts for April-June 2026 7.45am BST: French inflation report for September 10:30am BST: BoE Financial Policy Committee minutes 1.30pm BST: US PCE inflation index for August Key events 4m ago UK living standards picked up in April-June 9m ago Introduction: UK economy bigger than first thought after GDP revised higher Britons also put more money aside for a rainy day in April-June.
The household saving ratio increased by 0.2 percentage points to 8.8% in Quarter 2 2026, driven by a rise in the contribution of non-pension saving, the ONS says. UK living standards picked up in April-June An important measure of living standards jumped in the second quarter of this year, today’s national accounts show. Real household disposable income per head increased by 1.0% in April-June, following a decrease of 0.8% in January-March.
That means people had more money left to spend, save, or invest after taxes and deductions, adjusted for inflation. Introduction: UK economy bigger than first thought after GDP revised higher Good morning, and welcome to our rolling coverage of business, the financial markets and the world economy. The UK economy grew faster than first estimated in the second quarter of the year, despite the disruption caused by the Iran war.
UK growth in April-June has been revised to 0.5%, up from the previous estimate of 0.4%, in the latest National Accounts. That’s a welcome piece of good news for chancellor John Healey, as he draws up the budget due in four week’s time, and means his predecessor Rachel Reeves handed over a slightly larger economy than previously recognised. Growth in Q2 2026 was driven by the services sector (where activity increased by 0.6%) and the construction sector (which grew by 0.8%), while the production sector shrank by 0.1%.
However...the Office for National Statistics , which publishes the data, has also revised down its estimate for growth in 2025. ONS director of economic statistics Liz McKeown said: double quotation mark “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.” A chart showing today’s GDP revisions Photograph: Office for National Statistics The agenda 7am BST: UK national accounts for April-June 2026 7.45am BST: French inflation report for September 10:30am BST: BoE Financial Policy Committee minutes 1.30pm BST: US PCE inflation index for August
Source: The Guardian
