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UK GDP growth slows after strong first half, ONS shows
In the three months to June, UK GDP rose 0.4% after 0.6% growth in the first quarter, while June alone grew 0.3% versus expectations for zero.
The UK economy showed unexpected momentum in the first half of 2026, with official data indicating it remained the fastest-growing economy in the G7, even as international pressures continue. According to the Office for National Statistics, GDP growth slowed to 0.4% in the three months to June, following a 0.6% rise in the first quarter.
The latest monthly numbers also pointed to continued activity, with June growth of 0.3% that beat expectations for flat performance. The Guardian Business said analysts have cited factors such as hotter weather and consumer spending boosted by England’s men’s World Cup run to explain part of the strength.
Business investment also improved, jumping by 1.7%, with the paper noting that a step up in the IT sector may reflect the build out of computing power needed for artificial intelligence. Deutsche Bank estimates a new annual growth figure of 1.1%, above the IMF’s spring forecast of 0.8%.
The figures are expected to feed into the political and policy timeline, with the new chancellor, John Healey, preparing to deliver his first budget on 28 October, The Guardian Business added. The outlet also pointed to reasons the current resilience may fade later in 2026, citing weaker growth outlooks alongside rising energy costs and persistent inflation.