UK second-quarter growth revised higher

The Office for National Statistics raised its estimate of UK second-quarter growth to 0.5% on September 30, from the previous 0.4%. Services expanded by 0.6% and construction by 0.8%, while production contracted by 0.1%.

For Hungarian exporters and business-service providers, the revision may point to a somewhat stronger UK demand backdrop. The actual effect will still differ by industry and contract: sterling, local costs and customer investment plans can each change revenue measured in forints. The stronger overall picture is mainly a useful signal for service and investment ties, not an automatic rise in orders. Company-level conclusions still require a firm’s own order book and pricing data. Our earlier UK monthly GDP report covered the July momentum, while our morning market roundup puts the day’s international risks in context.

Real household disposable income per head rose by 1.0%, and the saving ratio increased to 8.8%. That strengthened the picture for domestic demand, while the ONS said net trade also supported growth. The next full quarterly estimate is due on November 12; until then, sterling, Bank of England rate expectations and UK budget plans remain important checkpoints.