UK Q2 GDP Revised Higher to 0.5% Quarter Over Quarter

The UK's second-quarter GDP has been revised upward to 0.5% quarter over quarter from an initial estimate of 0.4%, according to a final report released by investingLive. This marks a mild revision higher than the preliminary estimate, reinforcing a more resilient economic picture in the second quarter.

The services sector played a significant role in this growth, with output increasing by 0.6% during the quarter and estimated to be 1.7% higher compared to the same period last year. This boost was led by household consumption, which rose 0.3%, and business investment, which increased 1.7%. However, construction grew at a slower pace of 0.3%, while production remained flat.

While this revised estimate doesn't significantly impact market expectations or the Bank of England's (BOE) policy decisions, it does provide a more accurate picture of the UK economy's performance in Q2. As the BOE focuses on the trade-off between inflation and activity, stronger growth could give them more room to tighten policy further.