UK Economy Slows Growth but Avoids Stagnation

The UK economy grew by 0.4% in the second quarter of 2026 compared with the previous three months. The growth rate slowed compared with 0.6% in the first quarter, according to the preliminary estimate from the British Office for National Statistics.

Compared with the second quarter of 2025, real GDP increased by 1.2%. GDP per person grew by 0.4% over the quarter and by 1% year-on-year.

The main driver of economic growth remained the services sector, which added 0.5%. Information and communication companies, professional, scientific and technical services showed the best dynamics. In particular, volumes in computer programming increased by 3.7%.

Construction grew by 0.3% in April-June, while industrial production remained at the level of the previous quarter. Household consumer spending increased by 0.3% and business investment by 1.7%.

In June, UK GDP grew by 0.3% after zero growth in May and a decline of 0.1% in April. The pick-up in consumer activity was helped by hot weather and spending related to the World Cup.

At the same time, economists expect a weakening momentum in the second half of the year. Among the main risks they cite higher energy prices, inflationary pressure and rising utility costs for households.

Based on materials from: UK Office for National Statistics, The Guardian