UK GDP growth slows to 0.4% in Q2
Initial figures from the UK Office for National Statistics indicate that the country's Gross Domestic Product (GDP) grew by 0.4% in the second quarter of 2026, slowing down from 0.6% in the first quarter. The last month of the quarter, June, saw a 0.3% increase in output, surpassing expectations and offsetting declines in May's economy and April's 0.1% contraction. The services sector contributed a growth of 0.5%, and the construction sector grew by 0.3%, while overall production remained flat due to a decline in electricity, gas, and water supplies. Capital expenditure rose by 1.2%, and household consumption increased by 0.3%, whereas government spending fell by 0.3%, mainly due to decreased expenditure on health and education, especially with schools closing during the heatwave in June. In terms of living standards, real per capita GDP increased by 0.4% in the quarter and by 1% compared to the previous year, while nominal GDP grew by 0.8%, equivalent to a 4.1% increase on an annual basis, primarily driven by higher operating surpluses of companies.
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