UK Q2 GDP Growth Revised Upward to 0.5% Driven by Stronger Services Output
Gross domestic product in the United Kingdom expanded by 0.5% in the second quarter of 2026, according to updated estimates from the Office for National Statistics.
In Brief
- •Gross domestic product in the United Kingdom expanded by 0.5% in the second quarter of 2026, according to updated estimates from the Office for National Statistics.
- •Stronger-than-expected activity in the services sector drove the upward revision from an initial baseline estimate of 0.4%.
- •The statistical agency revised full-year 2025 growth downward from 1.3% to 1.2%, signaling weaker underlying historical momentum.
- •Analysts warn that rising energy and fuel costs tied to conflict in Iran could lead to stagnant growth during the second half of 2026.
Why It Matters
The second-quarter expansion demonstrates near-term resilience for the UK economy following a 0.6% growth rate in the first quarter. However, the positive momentum is counterbalanced by downgraded historical figures for 2025 and emerging macroeconomic headwinds. Surging international oil and gas prices threaten to reduce household purchasing power and increase operating expenditures for businesses. Forecasts of a potential 16% surge in household energy costs by January could further restrain consumer demand, increasing the stakes for the government's forthcoming fiscal Budget.
Key Details
- Q2 2026 GDP Growth (Revised)
- 0.5%
- Q2 2026 GDP Growth (Initial Estimate)
- 0.4%
- Q1 2026 GDP Growth
- 0.6%
- Revised 2025 Full-Year Growth
- 1.2%
- Forecasted 2026 Full-Year Growth
- 1.2%
- Projected January Household Energy Bill Rise
- 16%
Context & Background
The Office for National Statistics periodically adjusts GDP estimates as more detailed datasets from business surveys and government records are processed and incorporated.
Original Reporting & Sources
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