The UK economy grew faster than first estimated in the second quarter of the year, despite disruption caused by the Iran war. Growth in April-June has been revised to 0.5%, up from the previous estimate of 0.4%, according to the latest National Accounts.
Revised figures for Q2 2026
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%. The production sector shrank by 0.1% during the quarter.
The revised figure is welcome news for chancellor John Healey as he draws up the budget due in four weeks' time. It means his predecessor Rachel Reeves handed over a slightly larger economy than previously recognised.
2025 growth revised down
The Office for National Statistics, which publishes the data, has also revised down its estimate for growth in 2025. The ONS director of economic statistics, Liz McKeown, 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 agenda for today includes the UK national accounts for April-June 2026 at 7am BST, the French inflation report for September at 7.45am BST, the Bank of England Financial Policy Committee minutes at 10.30am BST, and the US PCE inflation index for August at 1.30pm BST.
