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Wednesday, September 30th, 2026

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UK economy grows 0.5% as household incomes and business investment pick up

The UK economy grew by 0.5% between April and June 2026, according to revised figures from the Office for National Statistics. That is up from the previous estimate of 0.4%, following 0.6% growth in the first quarter.

The figures also suggest some improvement for households. Real household disposable income per head rose by 1.0% in the quarter, reversing a 0.8% fall at the start of the year. The household saving ratio edged up to 8.8%.

Services and investment lead the way

Services output increased by 0.6%, with professional, scientific and technical work, alongside information and communication, among the strongest performers. Computer programming and consultancy grew by 3.6%, while scientific research and development rose by 6.7%.

Construction expanded by 0.8%, although its output remained 1.0% below the same quarter a year earlier. Production fell by 0.1%, despite manufacturing growing by 0.5%.

Business investment rose by 1.8% during the quarter and was 5.2% higher than a year earlier. Export volumes also increased sharply, rising by 2.8%, while imports showed no growth.

Real GDP per head rose by 0.5% in the quarter and was 1.2% higher than a year earlier. The ONS notes that GDP estimates can be revised as more detailed data becomes available.

Why it matters for Britain

The figures point to broader activity across services, construction, exports and business investment. Rising real household income per head also offers some support for living standards, although the data remains subject to revision.

Original Article Source:
Gov
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Article published: 30 September 2026

Filed under: Business

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