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UK GDP rises 0.4% in second quarter, reversing May stagnation

June growth outpaced expectations, and the Office for National Statistics said higher oil prices fed into inflation while evidence of wider second-order effects remained limited.

Reported · Written up by our desk · Europe

Britain’s economy grew 0.4% in the second quarter of 2026, according to the latest GDP figures, matching economists’ expectations but improving on a period of stagnation in May. The ONS estimated the UK economy was 1.2% larger than a year earlier.

Real GDP per person rose 0.4% in the quarter, up 1.0% versus the same period a year ago. The ONS attributed part of the June momentum to factors including the World Cup and hot weather.

The ONS also linked the economic backdrop to the US-Israeli war on Iran, saying its effects on the UK economy were still unclear. It noted that higher oil prices had already passed through to higher inflation, while there had been limited evidence of broader second-order effects spreading through the economy.

Businesses cited risks from the conflict in sectors including manufacturing, wholesale, land transport services, warehousing and travel agencies, though the ONS said there were fewer references in June compared with earlier months tied to a ceasefire period, leaving the impact difficult to quantify.

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