UK Revises Q2 Economic Growth Rate Down from 0.6% to 0.5%

The UK government has lowered its second-quarter economic growth forecast from the previous estimate of 0.6% to 0.5%, a 0.1 percentage point decrease.

On the 30th (local time), the UK Office for National Statistics announced that it would revise the quarter-on-quarter growth rate of the second-quarter Gross Domestic Product (GDP) down by 0.1 percentage points to 0.5%. In particular, the growth rate of the services sector in the second quarter was adjusted downward by 0.2 percentage points from 0.8% to 0.6%.

This downward revision in economic growth is expected to be a burden as the Keir Starmer government, which took office in July with 'economic growth' as its top priority, faces this adjustment.

According to the monthly GDP data released earlier this month, the growth rate remained at 0% month-on-month in both June and July.

Thomas Pugh, a UK economist, told Bloomberg, "There is a possibility that economic growth will slow down in the second half of this year. However, growth is expected to be driven more by household spending and business investment than government expenditure, resulting in a healthier composition."