The economy expanded by slightly less than originally reported in the second quarter. A 0.5 percent quarterly rate was a tick less than shown in the provisional report and reduced annual growth from 0.9 percent to 0.7 percent, albeit still up on the first quarter's unrevised 0.3 percent pace.

Household consumption posted a modest and unrevised 0.2 percent quarterly gain, down from the previous period's 0.6 percent rise, while growth of gross fixed capital formation eased from 1.2 percent to a slightly stronger revised 0.6 percent. Within the latter, business investment now shows a 1.4 percent advance having dipped 0.1 percent in the earlier estimate. Government spending jumped 1.1 percent but business inventories subtracted 0.2 percentage points.

Net foreign trade had a sizeable negative impact, subtracting a larger revised 2.2 percentage points as a 0.3 percent drop in exports was compounded by a 6.3 percent spike in imports. At £22.5 billion, the real foreign trade deficit was the largest since the first quarter of 2022.

Still, despite the small downward adjustment to headline growth, the composition of final demand is more positive and confirms that the economy outperformed most expectations over the first half of the year. As such, it also reduces pressure on the BoE to cut Bank Rate again in November. Today's updates put the UK RPI at 0 and the RPI-P at minus 5. Overall economic activity is running broadly in line with market forecasts.

No revisions are expected to the provisional data leaving the quarterly change at 0.6 percent and annual growth of 0.9 percent.

Gross domestic product (GDP) is the broadest measure of aggregate economic activity and encompasses every sector of the economy. Since 2018, the first, or provisional, estimate includes the GDP expenditure components as well as data on the main output sectors. These results are updated in the second, and final, report.

GDP is the all-inclusive measure of economic activity. Investors need to closely track the economy because it usually dictates how investments will perform. Stock market Investors like to see healthy economic growth because robust business activity translates to higher corporate profits. The GDP report contains a treasure-trove of information which not only paints an image of the overall economy, but tells investors about important trends within the big picture. These data are readily comparable to other industrialized countries. GDP components such as consumer spending, business and residential investment, and price (inflation) indexes illuminate the economy's undercurrents, which can translate to investment opportunities and guidance in managing a portfolio.

Each financial market reacts differently to GDP data because of their focus. For example, equity market participants cheer healthy economic growth because it improves the corporate profit outlook while weak growth generally means anemic earnings. Equities generally drop on disappointing growth and climb on good growth prospects.

Bond or fixed income markets are contrarians. They prefer weak growth so that there is less of a chance of higher central bank interest rates and inflation. When GDP growth is poor or negative it indicates anemic or negative economic activity. Bond prices will rise and interest rates will fall. When growth is positive and good, interest rates will be higher and bond prices lower.

Currency traders prefer healthy growth and higher interest rates. Both lead to increased demand for a local currency. However, inflationary pressures put pressure on a currency regardless of growth. For example, if the UK reports that the consumer price index has risen more than the Bank of England's 2 percent inflation target, demand for sterling could decline. Similarly, when the Bank of England lowers interest rates, the pound sterling weakens. (Currency traders also watch the interest rate spread between countries.)