Britain’s economy grew faster than initially estimated in the second quarter of 2026, helped by stronger services activity, according to revised figures from the Office for National Statistics.
Gross domestic product increased 0.5% between April and June, compared with the previous estimate of 0.4%. Growth nevertheless slowed from 0.6% in the first quarter. The latest figures also showed that real GDP per head increased 0.5% during the second quarter and was 1.2% higher than a year earlier.
The revision was largely linked to stronger performance in the services sector. Services output increased 0.6% during the quarter, compared with the earlier estimate of 0.5%. Construction output rose 0.8%, while production declined 0.1%.
Business-facing services grew 0.7%, while consumer-facing services increased 0.4%. Professional, scientific and technical activities were among the areas contributing to services growth.
Household finances also showed some improvement. Real household disposable income per head increased 1% in the second quarter after falling 0.8% in the first three months of the year. The household saving ratio also rose by 0.2 percentage points to 8.8%.
The figures provide a slightly stronger picture of economic activity ahead of the government’s Budget on October 28. Chancellor John Healey has said the Budget will be based on fiscal discipline and is intended to provide greater stability for households and businesses.
However, the economy continues to face challenges from inflation, borrowing costs and weakness in parts of the labour market. Richard Carter, head of fixed interest research at Quilter Cheviot, said the revised growth figure was better than expected but described economic expansion as difficult while households and businesses faced higher costs.
He also said the outlook had become more uncertain because of recent movements in energy prices and borrowing costs.
The latest figures show that the UK economy remained below the pace seen at the beginning of the year, despite the upward revision. The ONS said GDP was 2% higher in the second quarter of 2026 than in the final quarter of 2024, slightly above its previous estimate of 1.9%.
The government is now preparing for the October Budget against a backdrop of continued economic uncertainty. While the stronger second-quarter figures provide evidence of resilience, businesses and households remain sensitive to changes in prices, borrowing costs and employment conditions.
The ONS also cautioned that GDP estimates can be revised as more detailed information becomes available, meaning the latest figures are not necessarily the final assessment of economic performance.
