UK economy grew less than thought in spring
· BBC NewsDearbail Jordan
Business reporter, BBC News
UK economic growth between April and June was less than previously estimated, according to official figures.
The economy expanded by 0.5%, down from an initial reading of 0.6%, after the manufacturing and construction sectors fell by more than first thought.
The data has emerged as the Labour government, which has made economic growth one of its key policies, prepares to announce its first Budget in four weeks' time.
Labour has been criticised for its gloomy outlook with Prime Minister Sir Keir Starmer having warned that the Budget will be "painful" but Chancellor Rachel Reeves recently attempted to strike a more upbeat note, saying that Britain’s “best days lie ahead”.
Paul Dales, chief UK economist at Capital Economics, said the downward revision "shouldn’t make the Bank of England worry too much about the economy running out of momentum".
The latest growth figures may not lead to significant changes by the Office for Budget Responsibility, which is preparing forecasts for next month’s Budget.
The independent forecaster monitors the government's spending plans and performance and publishes its projections at the same time as the government outlines its Budget.
The Office for National Statistics (ONS), which published the figures, said the production of transport and related equipment tumbled by 3.1% between April and June after a long period of growth.
It was first estimated to have fallen by 0.7%.
The ONS said there was evidence to suggest that factories had reduced manufacturing as they prepare for the shift to making electric cars.
Construction also dropped due to a continuing decline in building new homes. However, the ONS said there were some signs this was beginning to ease.
Mr Dales said that while the dip was not a major cause for concern, "it may add to the Bank’s view that interest rates need to be reduced further."
The Bank of England cut interest rates for the first time in nearly four years in August, to 5% from 5.25%.