UK GDP grew 0.4% in the second quarter of 2026, matching forecasts but slower than the first quarter's 0.6% pace, the Office for National Statistics said. Warmer weather and the football World Cup lifted June output, while manufacturing kept lagging.
UK gross domestic product rose 0.4% between April and June, in line with economists' forecasts but down from 0.6% growth in the first quarter. The Office for National Statistics said growth had stayed relatively robust even as the pace cooled.
Services keep the economy moving
Services output rose 0.5% quarter on quarter, the main driver of the quarter's expansion. Construction added 0.3% over the same period, while production output was flat. Annual growth accelerated to 1.2%, beating a 1.1% consensus forecast, up from 0.9% previously. GDP per person also rose, up 0.4% on the quarter and 1.0% on the year.
World Cup and hot weather lift June
June's own reading came in stronger than feared: GDP grew 0.3% month on month, reversing an expected 0.1% contraction and improving on flat growth in May. Some businesses reported that good weather and sporting events may have had a positive effect in June, with the men's football World Cup, which kicked off mid-June, boosting hospitality venues showing matches. The ONS separately said some positive impacts from the hot weather were cited across manufacturing, retail, accommodation, and amusement and recreation activities, while the same conditions hurt construction activity and closed some schools.
Manufacturing stays the weak spot
Beneath the headline figure, growth remained uneven. Manufacturing output fell 0.5% in June, a steeper drop than the previously reported 0.2% decline. Construction output slipped 0.1% on the month as well. The ONS pointed to computer programming, advertising and pharmaceuticals as areas of strength in the quarter, offset by falls in power generation and sewerage.
Chancellor John Healey said people were still feeling pressure from the Middle East conflict's impact on living costs. According to BBC News: "drive growth in every postcode" was how he described the government's aim for the economy.
Sources: BBC News, The Guardian, ActionForex
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