The UK economy's growth in the second quarter of 2023 has been revised downwards, according to new figures released by the Office for National Statistics (ONS) on Monday. The Gross Domestic Product (GDP) grew by 0.5% from April to June, a decrease from the previously estimated 0.6%.

The ONS reported that the services sector was a key driver of this growth, expanding by 0.6% during the quarter, with broad increases across various service industries. However, this was countered by declines in both the production and construction sectors.

For the entire year of 2023, GDP is now estimated to have grown by 0.3%, a revision up from the initial estimate of just 0.1%. This adjustment largely stems from updated data related to the income approach used for calculating GDP.

Liz McKeown, ONS director of economic statistics, explained that the updated GDP figures incorporate new annual survey data, VAT returns, and refined industry size information. Despite these updates, she noted that the overall growth trajectory over the past 18 months remains largely unchanged.

Additionally, McKeown highlighted that household savings are on the rise, currently at their highest levels since the Covid-19 lockdowns. This trend may reflect changing consumer behaviors in response to the economic landscape.