UK economy grew 0.5% in second quarter, ONS says

The UK economy grew by 0.5% in the April-to-June quarter, revised up from an initial estimate of 0.4%, the Office for National Statistics said on Wednesday.

The revised figure still showed slower growth than the 0.6% expansion recorded in the first quarter.

Liz McKeown, the ONS director of economic statistics, said stronger services growth meant the economy was “slightly larger than previously estimated”.

The data comes before the October 28 budget presentation, which Finance Minister John Healey is due to deliver. Prime Minister Andy Burnham’s Labour government has said easing the cost of living is a key focus, while Healey has pledged to maintain strict fiscal discipline.

Richard Carter, head of fixed interest research at Quilter Cheviot, said growth was “marginally better than initially expected” but remained hard to achieve as households and businesses faced high borrowing costs, inflation pressures and a cooling labour market.