UK GDP Grew 0.5% in Q2, Upward Revision Boost for Chancellor Ahead of Budget

The UK economy grew 0.5% between April and June, the Office for National Statistics said, revising up its previous estimate of 0.4%, as stronger exports and business investment lifted gross domestic product ahead of Chancellor John Healey's first Budget on Oct. 28. Business investment jumped 1.8%, up from an earlier estimate of 1.7%, while consumer spending rose 0.3%. Government spending contracted 0.5%, a steeper decline than previously reported, indicating the economy is no longer heavily reliant on public outlays. The ONS also revised 2025 growth down 0.1 percentage points to 1.2%. RSM UK raised its annual GDP forecast to 1.4% from 1.2% on the data. Economists warned the boost may prove fleeting, citing high energy prices, rising inflation and elevated borrowing costs that have eroded the fiscal buffer left by predecessor Rachel Reeves.