The UK GDP grew by 0.4% in the second quarter of 2026, matching economists' forecasts. This is according to preliminary data released by the Office for National Statistics (ONS).
The figure slowed compared to a 0.6% growth in the first quarter, but the structure of the data indicates a more optimistic picture than can be inferred from the final figure.
Notably, the monthly GDP growth in June was 0.3%, significantly exceeding expectations of a slight decline.
This was preceded by a zero growth in May, which was revised down from an initial estimate of 0.1%, while the 0.1% decline recorded in April remained unchanged. The June growth helped offset the weak start of the quarter, although the pace of quarterly growth had slowed compared to the first quarter.
According to ONS data, output in the services sector, which is the main driver of the UK economy, grew by 0.5% during the quarter, while the construction sector increased by 0.3%. No growth was recorded in the manufacturing sector; declines in electricity, gas, and water supply neutralized gains in the manufacturing industry.
From an expenditure perspective, the growth was mainly driven by a 1.2% increase in gross fixed capital formation, as well as a 0.3% rise in household consumption expenditures.
Government consumption decreased by 0.3%, partly due to a reduction in spending on health and education, which may be related to school closures during the heatwave in June.
Real GDP per capita, a more accurate indicator of living standards, increased by 0.4% during the quarter and by 1% year-on-year. Nominal GDP rose by 0.8% and exceeded last year's figures by 4.1%. ONS notes that much of this growth is attributed to an increase in gross operating profits.
