The UK economy grew by 0.4% between April and June 2026, slowing from 0.6% growth in the first quarter of the year. Compared with the same period in 2025, real gross domestic product was 1.2% higher.

Monthly figures showed a mixed pattern throughout the quarter. GDP fell by 0.1% in April, was unchanged in May and then increased by 0.3% in June. The May estimate was revised down from an earlier figure showing 0.1% growth.

Services Led the Expansion

The services sector was the main driver of growth, expanding by 0.5% in the second quarter. Construction increased by 0.3%, while production output was unchanged. Overall, 15 of the 20 main GDP subsectors recorded growth.

Within services, information and communication grew by 2.7%, supported by a 3.7% increase in computer programming, consultancy and related activities. Professional, scientific and technical activities rose by 1.7%, including a 4.3% increase in advertising and market research and a 3.9% rise in scientific research and development.

Manufacturing output increased by 1.0%, with pharmaceutical production among the strongest-performing areas, rising by 4.2%. However, declines in electricity and gas supply, as well as in water, sewerage and waste-management activities, offset those gains, leaving total production flat.

Household Spending Increased

Real household consumption rose by 0.3% during the quarter and was 1.0% higher than a year earlier. Recreation and culture, along with household goods and services, made some of the largest positive contributions. Excluding net tourism, domestic consumption increased by 0.4%.

Government consumption moved in the opposite direction, falling by 0.3%. The decline mainly reflected lower activity in health and education, with school closures during June’s heatwave potentially contributing to weaker education output.

Investment Provided Support

Gross fixed capital formation increased by 1.2% and stood 2.7% above its level a year earlier. Investment in information and communication technology, machinery and equipment made a notable contribution, while business investment rose by 1.7% during the quarter.

Exports and imports both increased by 0.5%. The UK’s trade deficit in goods and services was equivalent to 2.1% of nominal GDP, falling to 1.0% when non-monetary gold and other precious metals were excluded.

GDP Per Person Also Rose

Real GDP per head increased by 0.4% in the second quarter and was 1.0% higher than in the same period of 2025. Nominal GDP rose by 0.8% during the quarter and by 4.1% year on year, while the implied GDP deflator was 2.9% higher than a year earlier.

The latest figures show that the UK economy continued to expand in the second quarter of 2026, although at a slower pace than at the start of the year. Services and investment remained the main sources of growth, while weaker government consumption and flat production limited the overall rate of expansion.