UK GDP Growth Slows in Q2

2026-08-13 06:07 By Kyrie Dichosa 1 min. read

The UK economy expanded by 0.4% quarter-on-quarter in Q2 2026, slowing from 0.6% growth in Q1, in line with market expectations, preliminary estimates showed.

Services output rose 0.5% (vs 0.8% in Q1), led by information and communication, which increased 2.7%, and professional, scientific and technical activities, which grew 1.7%.

Production showed no growth (vs 0.2% in Q1) as gains in manufacturing and mining and quarrying were offset by declines in electricity, gas, steam and air conditioning supply and water, sewerage and waste management.

Construction output increased 0.3%, supported by gains in both new work and repair and maintenance.

On the expenditure side, growth was mainly driven by a 1.2% increase in gross fixed capital formation and a 0.3% rise in household consumption, while government consumption fell 0.3%.

On an annual basis, UK GDP expanded 1.2%, accelerating from 0.9% growth in Q1 and exceeding the expected 1.1% rise.



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UK GDP Growth Slows in Q2
The UK economy expanded by 0.4% quarter-on-quarter in Q2 2026, slowing from 0.6% growth in Q1, in line with market expectations, preliminary estimates showed. Services output rose 0.5% (vs 0.8% in Q1), led by information and communication, which increased 2.7%, and professional, scientific and technical activities, which grew 1.7%. Production showed no growth (vs 0.2% in Q1) as gains in manufacturing and mining and quarrying were offset by declines in electricity, gas, steam and air conditioning supply and water, sewerage and waste management. Construction output increased 0.3%, supported by gains in both new work and repair and maintenance. On the expenditure side, growth was mainly driven by a 1.2% increase in gross fixed capital formation and a 0.3% rise in household consumption, while government consumption fell 0.3%. On an annual basis, UK GDP expanded 1.2%, accelerating from 0.9% growth in Q1 and exceeding the expected 1.1% rise.
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