The UK's second-quarter GDP growth was revised upward to 0.5 percent quarter-on-quarter, from an initial estimate of 0.4 percent, according to official data reported by The Guardian. The US also saw stronger-than-first-estimated growth in the same period.
The upward revision suggests the UK economy proved more resilient to higher energy prices in the first half of 2026 than previously thought. Combined with unrevised Q1 growth of 0.6 percent, the UK achieved the highest growth rate in the G7 for the first half of the year, Chris Beauchamp, chief market analyst at IG, told The Guardian.
However, the composition of growth shifted. Government spending contracted 0.5 percent quarter-on-quarter in Q2, revised down from a previously estimated contraction of 0.3 percent. This marks a reversal from earlier in the year when government spending had supported economic activity.
Analysts quoted in The Guardian expressed cautious optimism about near-term momentum. One economist said surveys suggest positive momentum carried into Q3, prompting a revision upward of the annual GDP forecast to 1.4 percent. That same analyst warned the outlook darkens substantially from October onward, citing potential interest rate rises, sharply rising inflation and a tax-raising budget as headwinds likely to "drag heavily on growth over the winter."
Separately, bakery chain Greggs reported total sales growth accelerated to 7.7 percent in the third quarter, driven by more settled weather, menu development and new store openings. The company remains on track to open 100 to 110 net new stores this year, excluding 12 Express locations.
The timing of the GDP upgrade benefits Prime Minister Andy Burnham politically, Beauchamp noted, even though he took office nearly a month after the April-June quarter ended. The figures provide momentum heading into what analysts expect to be a slower growth period in the final quarter of 2026.