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UK economy grows faster than expected in Q2 2026 as services and exports drive stronger-than-forecast output

From the Newshound archive · first published 30 September 2026 · last updated 1 October 2026.

Business investment growth was sharply upgraded to 5.2% for the year, from an initial estimate of just 0.8%, as the ONS revised Britain's Q2 GDP up to 0.5%.
Business investment growth was sharply upgraded to 5.2% for the year, from an initial estimate of just 0.8%, as the ONS revised Britain's Q2 GDP up to 0.5%.

Britain's economy grew 0.5% in the second quarter of 2026, an upward revision from the initial estimate of 0.4%, confirming the UK's status as the G7's fastest-growing economy in the first half of the year. Income per head in real household disposable terms rose 1% over the quarter, the steepest gain since late 2024. Chancellor John Healey welcomed the figures ahead of his first budget next month, though analysts warn that soaring energy costs linked to the Iran war risk pushing growth close to zero in the second half.

Business investment growth was revised sharply upward to 5.2% annually, and the current account deficit shrank to its smallest share of GDP in five years.

Cornwall Insight cautioned that annual household energy bills may jump 16% in January — the steepest increase in four years — as fuel prices feel the impact of the Iran war.

Moretradingview.comUK Q2 GDP Growth Revised Higher to 0.5%rte.ieUK economic output revised up to show stronger Q2 growthglobalbankingandfinance.comUK Economic Output Revised Up, Shows Stronger Q2 Growth in 2026investing.comUK Q2 GDP beats forecasts as services and exports drive growth By Investing.comThe GuardianUK income growth revised upwards as markets hail ‘resilient’ economyThe IndependentUK economy grew ‘slightly larger’ than expected in pre-Budget boostgov.ukGDP quarterly national accounts, UK: April to June 2026 - Office for National StatisticsEvening StandardUK economy grows faster than first thought amid service sector boost
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