Latest figures from the Office of National Statistics show Britain’s economy grew by 0.2% in the three months to June, reversing the initial estimate of a 0.1% contraction.
The upward revision of the second quarter GDP by the Office for National Statistics (ONS) implies the UK is not in recession, as predicted by the Bank of England earlier this month.
The ONS said the growth was driven by upwards improvements for the health and financial sectors.
Gross domestic product (GDP) expanded by a revised 0.2% in Quarter 2 (Apr to June) 2022 and there was also an increase in capital expenditure by businesses in Quarter 2 2022.
Services output grew by 0.4 per cent in July after falling 0.5 per cent in June. The ONS dubbed this growth “the main driver” to the rise in GDP. Monthly GDP is now estimated to be 1.1 per cent above its pre-coronavirus levels.
The OSN state investment intentions also continue to be positive, although there is some evidence that uncertainty about the economy and tighter financial conditions was leading to postponement in some capital expenditure.
Grant Fitzner, the ONS chief economist, said:
“These improved figures show the economy grew in the second quarter, revised up from a small fall.
“They also show that, while household savings fell back in the most recent quarter, households saved more than we previously estimated during and after the pandemic.”
Chief Investment Officer at Quilter Investors, Marcus Brookes said:
“Rather surprisingly UK growth bounced back in July after a disappointing figure in June, easing concerns that a recession is on the immediate horizon.”
Full details from the Office of National Statistics can be found here.