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UK economy grew faster than estimated in first half of 2026

Official data revisions show UK households' incomes rose more strongly than previously thought, alongside an increase in economic growth.

  • UK households' income per head rose by 1.1% between January and June 2026.
  • Gross domestic product (GDP) increased by 0.5% in the April to June quarter, up from an earlier estimate of 0.4%.
  • Business investment grew by 1.8% in the second quarter of 2026.

Official data revisions indicate that UK households' incomes grew at a stronger pace than initially estimated during the first six months of 2026. Income per head rose by 1.1% between January and June, following an increase in the level of economic growth.

The Office for National Statistics (ONS) reported that gross domestic product (GDP) rose by 0.5% in the April to June quarter, an upgrade from the previously estimated 0.4%. This meant the UK economy grew at the same rate as the US in the first half of the year, with a 0.6% growth in the first quarter.

The ONS also noted that households increased their savings, with the savings rate rising from 8.6% in the first three months to 8.8% by the end of June. Business investment also saw an increase, growing by 1.8% in the second quarter and estimated to be 5.2% higher compared to the same quarter a year ago.

Analysts suggested that a "Burnham bounce" in confidence, following the Makerfield byelection announcement in May, could have contributed to the figures. Currency markets reacted positively, with Sterling hitting a six-week high against the euro and rising 0.4% against the US dollar to $1.3292.

Why this matters: The upgraded economic figures provide a boost for Chancellor John Healey ahead of his first budget next month.

What this means for you: Households' incomes grew at a stronger pace than previously estimated in the first half of the year, and the savings rate increased.

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