UK economy ‘slightly larger’ than previously estimated after April-June growth revised up – business live
UK economic growth in April to June was revised up from 0.4% to 0.5%, suggesting the economy was more resilient to higher energy prices than earlier estimates indicated. Analysts said the stronger figures could provide a political boost for Prime Minister Andy Burnham, who took office after the period covered.
Growth in the second quarter followed a 0.6% rise in the first quarter. Government spending fell by 0.5% in April to June, while analysts said surveys pointed to continued momentum in the third quarter; RSM UK raised its annual growth forecast to 1.4%. Economists cautioned that higher inflation, possible interest rate rises and tax increases could weigh on growth over the winter.
- Second-quarter growth was revised up to 0.5%.
- The first half was stronger than previously estimated.
- Analysts expect tougher conditions over the winter.