UK Economy Beats Initial Estimates with 0.5% Q2 Growth
The UK economy grew by 0.5% in the second quarter, according to revised estimates from the Office for National Statistics (ONS). This is an upgrade from the initial estimate of 0.4%. The services sector drove growth, increasing by 0.6%, while exports rose by a significant 2.8%.
The production sector, however, contracted by 0.1%, and construction grew at a slower rate than initially thought. Despite this, most parts of the economy expanded, with 13 out of 20 subsectors experiencing growth.
The level of GDP in the second quarter is now 2.0% higher than in the final quarter of 2024, up from 1.9% in the first estimate. The Bank of England will consider this data when making interest rate decisions, which affect mortgage borrowers and impact borrowing costs.