UK economic growth slows to 0.4% in second quarter on flat industrial output

· Business GBR
Part of European Inflation

The UK economy expanded 0.4% between April and June, official figures showed on Wednesday, marking a slowdown from the 0.6% pace recorded in the first quarter of 2026. The result matched economist forecasts and delivered annual growth of 1.1%.

The Office for National Statistics said services output rose 0.5% and construction gained 0.3%, while industrial production was flat. Monthly GDP grew 0.3% in June after stalling in May, with the FIFA World Cup boosting hospitality revenues as fans gathered to watch matches. Chancellor of the Exchequer John Healey claimed the UK had posted the fastest growth among G7 nations this year.

The data arrives ahead of Healey's first budget on 28 October, with households already facing a 13% electricity price jump in July after the energy price cap was raised.

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