UK Q2 GDP growth revised up to 0.7%

Gross domestic product data released by the Office for National Statistics on Friday showed the UK economy grew a little more than initially estimated in the second quarter.

The economy grew 0.7% in the three months to the end of June, up from a previous estimate of 0.6%. On the year, however, the economy grew 2.1%, down from the previous estimate of 2.2%.

The ONS said output in the services sector grew by 0.4 % compared with June, which was better than economists had been expecting. It was up 2.9% year-on-year.

ONS statistician Darren Morgan said: “Despite some very weak indicators appearing in the immediate aftermath of the referendum, estimates gathered by ONS from more than 23,000 firms now suggest that the services sector – which accounts for three quarters of the economy – in fact grew strongly in July.

“Further information also suggests that the whole economy also grew slightly more strongly in the months before polling day than previously thought. Together this fresh data tends to support the view that there has been no sign of an immediate shock to the economy, although the full picture will continue to emerge.”

Howard Archer, chief UK and European economist at IHS, said: “News that services output grew 0.4% month-on-month in July in the immediate aftermath of the Brexit vote is a significant boost to third quarter growth prospects; consequently we are lifting our third quarter growth estimate to 0.4% quarter-on-quarter from 0.3%.”