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UK Economy Remains 'Relatively Robust' Despite Slowdown in Second Quarter

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UK Economy Remains 'Relatively Robust' Despite Slowdown in Second Quarter

The UK recorded a slowdown in economic growth between April and June, as output in both the services and construction sectors increased and growth in the production industry flatlined.

The country's gross domestic product grew 0.4% in the second quarter, following a 0.6% rise in the prior-three-month period, according to preliminary data from the Office for National Statistics published Thursday. The latest reading came in line with the consensus estimate. On a yearly basis, the British economy expanded 1.2%, against the previous 0.9% increase and the expected 1.1% growth.

Output in the services sector rose 0.5% in the second quarter, with eight of its 14 subsectors positively contributing to growth. Construction output edged up 0.3%, supported by increases in new work and in repair and maintenance.

Meanwhile, the production sector showed no growth in the three months to June, after a 0.2% uptick in the previous quarter.

"Growth slowed in the second quarter of the year, following a strong start to 2026, but remained relatively robust. Services were once again the main driver of growth, while production was broadly unchanged and construction also grew," ONS Director of Economic Statistics Liz McKeown said. "Within services, computer programming and advertising continued to perform strongly, as they have done throughout the year, while wholesale was a notable area of weakness. While production was flat across the quarter, manufacturing grew, led by the often-volatile pharmaceutical industry alongside further strength in computer products. This was offset by falls in power generation and sewerage."

In June alone, the UK economy expanded 0.3% month over month, following a downwardly revised zero growth in May. Analysts expected a flat reading for the month.

"Services also drove growth in June, with some businesses reporting that good weather and sporting events may have had a positive impact that month," McKeown noted.

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