UK economic output revised up to show stronger Q2 growth

LONDON, Sept 30 (Reuters) - Britain's economy grew faster than previously thought in the second quarter, with positive signs from household finances and business investment that could encourage finance minister John Healey as he prepares October's budget.

Economic output expanded by 0.5% in the April-to-June period, the Office for National Statistics said on Wednesday.

The reading was slightly stronger than a preliminary estimate for 0.4% growth in gross domestic product. Economists polled by Reuters had expected the 0.4% rise to be confirmed.

Britain's economy was the fastest growing among the Group of Seven large advanced economies in the first half of 2026, the ONS data showed.

Real household disposable income per head rose by 1.0% in quarterly terms during the three months to June, the biggest jump since the end of 2024 and following a 0.8% drop in the first quarter.

The ONS also revised up second-quarter business investment growth to an annual rate of 5.2% from an initial estimate of 0.8%.

Separate balance-of-payments data showed Britain ran a smaller current account deficit than economists had expected in the second quarter, at £19.9 billion ($26.4 billion) versus a consensus of £24.7 billion.

Excluding precious metals trade, the deficit closed to 1.4% of economic output, the smallest such reading in five years and helped by strong growth in services exports.

($1 = 0.7547 pounds)

(Reporting by Suban Abdulla and Andy Bruce; Editing by Kate Holton)