UK Annual GDP Growth Strongest in Over a Year

The UK economy expanded by 1.4% year-over-year in Q2 2026, accelerating from 0.8% growth in Q1 and revising higher from the preliminary estimates of 1.2%. This marked the strongest economic expansion since Q1 2025, mainly supported by a 1.7% increase in services output, while production rose 0.4% and construction fell 1.0%. On the expenditure side, household consumption increased 1.2%, while government consumption rose 1.2%. Gross fixed capital formation climbed 3.1%, with business investment up 5.2%. Exports increased 4.2%, while imports rose 2.5%, resulting in a positive contribution from net trade.

The UK economy expanded by 1.2% year-over-year in Q2 2026, accelerating from 0.9% growth in Q1 and exceeding the expected 1.1% expansion, preliminary estimates showed. Growth was supported by a 1.5% increase in services output, with information and communication and professional, scientific and technical activities among the largest contributors. Production output rose 0.3%, driven by manufacturing and mining and quarrying, while construction output fell 2.0%. On the expenditure side, household consumption increased 1.0%, while government consumption rose 1.4%. Gross fixed capital formation climbed 2.7%, supported by higher investment in information and communication technology and other machinery and equipment. Business investment increased 0.8%. Trade provided a drag on growth as exports increased 2.4%, while imports rose 2.9%.

The UK economy expanded by 0.9% year-over-year in Q1 2026, revised down from the preliminary estimate of 1.1% and matching the revised pace recorded in the previous quarter. Growth was driven by a 1.2% increase in services output, while production declined 0.1% and construction fell 1.6% from a year earlier. On the expenditure side, household consumption rose 0.9%, supported by spending on restaurants, hotels, household goods, and miscellaneous items. Government consumption increased 2.7%, reflecting higher public administration, defense, and health spending, while gross fixed capital formation climbed 1.6%, driven by investment in buildings, transport equipment, and machinery. Meanwhile, exports increased 0.6%, but imports rose 2.7%, weighing on net trade.