UK Economy Grows 0.4% in Second Quarter as Services Drive Growth

Ashfak Juned
Aug 13, 2026 08:02 AM
UK Economy Grows 0.4% in Second Quarter as Services Drive Growth

The UK economy grew by 0.4% between April and June, according to the latest official figures, although the pace of growth slowed slightly compared with the previous quarter.

Gross domestic product (GDP), which measures the total value of goods and services produced across the economy, increased 0.4% in the second quarter, the Office for National Statistics (ONS) said.

That represents a modest slowdown from the 0.6% growth recorded during the first three months of 2026.

Liz McKeown, the ONS's director of economic statistics, said the economy had remained "relatively robust" following what she described as a "strong start" to the year.

The slowdown does not appear to have been mainly caused by consumers cutting spending because of higher fuel costs linked to the Iran war. Instead, Rob Wood, chief UK economist at research firm Pantheon Macroeconomics, described the change as a "mechanical unwind" following unusually strong spending earlier in the year.

The services sector, which makes up the largest part of the UK economy, was a key factor behind the continued growth.

Computer programming and advertising were among the areas that performed particularly strongly, according to Ms McKeown.

Monthly figures also showed stronger-than-expected growth in June. GDP increased by 0.3% during the month, compared with economists' forecast of no growth in a Reuters poll.

Ms McKeown said sunny weather and sporting events contributed to the unexpected rise in June, which was also the month the World Cup began.

At the time covered by the figures, Rachel Reeves was still serving as the UK chancellor.

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UK Economy Grows 0.4% in Second Quarter as Services Drive Growth