The United Kingdom's economy grew by 0.4 percent in the second quarter of 2026, a decrease from the 0.6 percent growth recorded in the first quarter, according to data released by the Office for National Statistics.
The services sector was the primary driver of growth, expanding by 0.5 percent. The construction sector also saw a modest increase of 0.3 percent, while production output remained stagnant.
Real Gross Domestic Product (GDP) per head rose by 0.4 percent in the second quarter, reaching a 1.0 percent increase compared to the same period in the previous year. These figures come amidst broader economic pressures.
Chancellor John Healey acknowledged concerns about the impact of the conflict in the Middle East on the cost of living and British businesses. "I know people are worried about the impact of the conflict in the Middle East on their cost of living, which has been too high for too long and it has added pressure on British businesses," Healey stated. He emphasized the government's commitment to supporting the economy, adding, "This is an active, hands-on Government, putting British interests first – giving breathing space to those feeling the strain, making our country more resilient and bringing hope back."
Healey echoed Prime Minister Andy Burnham's objective to achieve "growth in every postcode" across the UK. The UK economy has experienced disruptions, particularly related to the Strait of Hormuz, which have been linked to the ongoing conflict in the Middle East. These geopolitical tensions have contributed to higher energy prices since February and have affected consumer sentiment.
Despite the slowdown, Healey pointed to the UK's economic performance within the G7, stating, "We've seen the fastest growth in the G7 this year, but we now need to double down and drive growth in every postcode."