UK GDP Growth Slows to 0.4% in Q2 2026 as Services Lead Expansion

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UK GDP Growth Slows to 0.4% in Q2 2026 as Services Lead Expansion
PrimeXBT Editorial Team
Reviewed by PrimeXBT

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UK real GDP grew 0.4% quarter-on-quarter in Q2 2026, down from 0.6% in Q1, according to the Office for National Statistics. Services drove the gain while the production sector stalled, and the ONS reported no revisions to prior data.

The UK economy grew at a slower pace in the second quarter, with the ONS reporting real GDP up 0.4% quarter-on-quarter in its first estimate published on 13 August 2026. That follows 0.6% growth in the first quarter of 2026, easing the pace of expansion while keeping output in positive territory.

Services carry the quarter

By output, the services sector increased by 0.5%, construction rose 0.3%, but the production sector showed no growth in the quarter. On a year-on-year basis, real GDP is estimated to be 1.2% higher than the same quarter a year ago.

Real GDP per head also rose in the quarter. The measure increased by 0.4% quarter-on-quarter and is up 1.0% year-on-year. Nominal GDP, measured at current market prices, rose 0.8% in the quarter and is 4.1% higher than a year earlier. The implied GDP deflator increased by 2.9% compared with the same quarter last year.

Investment and spending behind the expansion

Expenditure is estimated to have grown by 0.4% in the quarter, mainly because of increases in gross fixed capital formation and household consumption, the ONS said. The monthly path shows GDP grew 0.3% in June 2026, after showing no growth in May (revised down from an initial estimate of 0.1%) and following an unrevised 0.1% fall in April.

What comes next

The ONS said there are no revisions to previously published GDP data in this release, in line with its National Accounts Revisions Policy. It will publish a Blue Book 2026 article on GDP impacts and expenditure components on 20 August 2026, followed by an updated quarterly national accounts bulletin on 30 September 2026.

Source: Office for National Statistics

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