The UK economy expanded by 0.5% in the second quarter of 2026, a final estimate that was revised up from the earlier 0.4% reading. Output was 1.4% higher than a year earlier, also above the preliminary estimate of 1.2%, according to the latest national accounts figures reported by ForexLive. The revision presents a slightly firmer picture of activity between April and June, after gross domestic product increased by 0.6% in the first quarter.
The Office for National Statistics’ initial estimate showed that services, the largest part of the UK economy, grew by 0.5% during the quarter. Construction output increased by 0.3%, while production was unchanged. Fifteen of the 20 detailed subsectors recorded growth. Household consumption rose by 0.3%, supported by recreation and culture and by household goods and services, while government consumption declined by 0.3%. The upward revision to headline GDP indicates that later information added more strength to the overall second-quarter result than was visible in the first release.
The annual revision is also important because it lifts the economy’s reported pace entering the second half of the year. The initial ONS figures had put real GDP per head 0.4% higher during the quarter and 1.0% above its level a year earlier. Nominal GDP had increased by 0.8% in the quarter and 4.1% on the year, while the economy-wide GDP deflator was 2.9% higher than a year earlier. Those earlier details showed private-sector demand contributing to growth even as public consumption fell.
The revised figures arrive as the Bank of England weighs resilient activity against persistent inflation pressure. The central bank voted 6-3 this month to leave interest rates unchanged, with a minority supporting an immediate quarter-point increase, Reuters reported on Tuesday. Policymaker Alan Taylor questioned whether a single rate rise would be practical because markets could interpret it as the beginning of a longer tightening cycle. That debate makes the strength and composition of incoming growth data relevant to expectations for the path of UK rates.
The second-quarter performance predates more recent evidence on the economy, so it does not by itself settle the outlook. Preliminary business surveys for September showed activity continuing to expand, but at a slower pace, while price pressures increased. The revised GDP figures nevertheless raise the base from which the second half is measured and show that growth in the spring was broader and slightly stronger than the first estimate suggested.
What it means for traders: GBP/USD may respond to whether later data confirm that the stronger second-quarter result carried into the autumn. Continued expansion alongside firm inflation would keep attention on the possibility of tighter Bank of England policy, while weaker activity or softer price data would reduce that pressure. Traders will next watch monthly GDP, labor-market figures, inflation data and the Bank’s communications for evidence on whether demand is holding up and whether policymakers see the 0.5% quarterly expansion as consistent with bringing inflation under control.