PoundSterlingLIVE - The ONS upgraded its previous estimates for the growth in the UK economy following the introduction of more accurate measurements and revealed households saw an uptick in real disposable income.
The UK economy grew 0.6% year-on-year in the second quarter, up on the previous estimate of 0.4%, with the first quarter's growth being revised higher to 0.5% y/y.
Second-quarter growth remained at 0.2% on a quarter-on-quarter basis while the first quarter was revised up from 0.1% to 0.3% q/q said the ONS.
The changes come after the ONS introduced an upgrade to its methodology in keeping with global best practices as set out by the OECD.
Falling inflation appears to have helped the economy with much of the growth in the latest quarter being attributed to a 1.2% increase in the production sector, where there were increases in 9 out of the 13 sub-sectors.
The ONS said this reflects falling input prices across the quarter relieving some pressure on manufacturers.
Also explaining the resilience is the ending of the Cost of Living Crisis, with the ONS reporting real households' disposable income (RHDI) grew by 1.2% in Quarter 2 (Apr to June) 2023 following no change in the previous quarter. The ONS also said income (driven by a rise in social benefits and increased wages and salaries) grew more than expenditure.
The improvement in the position of UK households is revealed on the same day the Lloyds (LON:LLOY) Business Barometer survey showed businesses remain upbeat about the coming months, suggesting the UK economy can continue to grow and avoid recession.
The ONS also reveals the UK economy grew faster than all other G7 peers in 2021 and 2022, something of a surprise when one considers the reams of perma-bear predictions issued by institutional analysts and takes by the media.
An original version of this article can be viewed at Pound Sterling Live
