UK GDP revised higher as lending outlook weakens

The UK economy grew 0.5% in the second quarter of 2026, the Office for National Statistics said Wednesday, revising its earlier estimate of 0.4% upward. The updated figures also showed that growth in 2025 was weaker than first recorded, at 1.2% rather than 1.3%. The revisions point to a slightly larger economy in April-June, but do not remove signs of pressure on borrowing and household demand. The ONS said stronger services activity contributed to the upgrade. Services output grew 0.6% in the quarter, while construction expanded 0.8% and production contracted 0.1%, according to the revised breakdown. The agency said its annual update incorporated improved information about activity, particularly in services, along with updated data sources. It also revised the quarterly profile of growth in 2025. Separate Bank of England data showed 54,900 approvals for house-purchase mortgages in August, down from 55,900 in July and below the average of about 60,100 over the previous six months. The figure was the lowest since December 2023. Approvals for remortgages with a different lender also fell, to 34,000 from 34,600. The effective interest rate on newly drawn mortgages rose to 4.