UK economic output revised up to show stronger Q2 growth

Britain's ​economy grew faster than previously ​thought in the second ‌quarter, with positive ​signs from household finances and business investment that could encourage finance minister John Healey as ‌he prepares October's budget.

Economic output expanded by 0.5% in the April-to-June period, the Office for National Statistics said on Wednesday. The reading was slightly stronger ‌than a preliminary estimate for 0.4% growth in gross domestic product. Economists polled ‌by Reuters had expected the 0.4% rise to be confirmed.

Britain's economy was the fastest growing among the Group of Seven large advanced economies in the first ⁠half ​of 2026, the ONS ⁠data showed. Real household disposable income per head rose by 1.0% in quarterly terms during ⁠the three months to June, the biggest jump since the end of 2024 ​and following a 0.8% drop in the first quarter.

The ONS also ⁠revised up second-quarter business investment growth to an annual rate of 5.2% from an ⁠initial ​estimate of 0.8%. Separate balance-of-payments data showed Britain ran a smaller current account deficit than economists had expected in the second quarter, at £19.9 billion ($26.4 ⁠billion) versus a consensus of £24.7 billion.

Excluding precious metals trade, the deficit closed ⁠to 1.4% of ⁠economic output, the smallest such reading in five years and helped by strong growth in services exports. ($1 = 0.7547 ‌pounds)