UK Economy Revised Up to 0.5% in Q2, Services Sector Drives Growth

The UK's second-quarter GDP growth was revised up to 0.5%, exceeding earlier expectations, according to data released by the Office for National Statistics on Wednesday.

This upward revision indicates that the British economy remained resilient even before the sharp rise in energy prices and borrowing costs. The services sector made a strong contribution to this growth, with output in sectors such as professional, scientific, and technical activities increasing.

The revised data show that GDP in the second quarter was 2% higher than in the fourth quarter of last year, slightly above the initial estimate. This suggests a larger economic size, which could influence assessments of potential output and spare capacity.

While this performance is a welcome sign, it remains to be seen whether it can be sustained in subsequent quarters given the ongoing energy price shocks and tightening monetary policy.