UK Economy Sees Slight Revision in Second-Quarter Growth Figures

The UK economy has seen a slight revision in its second-quarter growth figures, coming in at 0.5% rather than the initial estimate of 0.4%. This revised figure still marks a slowdown from the 0.6% expansion recorded in the first quarter.

The upward revision was primarily driven by stronger services growth, with output increasing to 0.6%, up from the previously estimated 0.5%. Professional, scientific, and technical services saw significant gains, along with advertising, scientific research, legal services, and computer programming.

Household finances also improved, with real household disposable income per head rising by 1.0% after falling by 0.8% in the first quarter. However, production output fell by 0.1%, while construction expanded by 0.8%.

Economists remain cautious about the outlook, citing high borrowing costs, inflationary pressures, and a cooling labor market as concerns. With inflation rising and government bond yields reaching multi-decade highs this month, the UK economy faces increasing pressure.