UK Economy Grows 0.4% in Q2 2026

Note: This section contains information in English only.
Source: Dukascopy Bank SA
The UK economy continued to expand in Quarter 2 (April to June) 2026, with real gross domestic product (GDP) rising by 0.4% following a 0.6% growth rate in Quarter 1. Year-on-year, real GDP was 1.2% higher, while real GDP per head increased by 0.4% for the quarter and 1.0% compared to the same period in 2025. Monthly figures indicated a rebound toward the end of the quarter, as GDP grew by 0.3% in June after stagnating in May (0.0%) and slipping 0.1% in April. Internationally, the UK's quarterly performance placed it on par with the United States (+0.4%) and ahead of European peers France, Germany, and Italy (all at +0.2%), behind only Canada (+0.8%) among reporting G7 nations.



Growth during the quarter was primarily propelled by the services sector (+0.5%), with strong gains in information and communication (+2.7%) and professional activities (+1.7%), along with a modest uptick in construction (+0.3%). Production output remained unchanged overall (0.0%), as a 1.0% boost in manufacturing was offset by sharp declines in energy and water utilities. Expenditure was buoyed by a 0.3% increase in household spending and a 1.7% rise in business investment—particularly in technology hardware—which offset a 0.3% drop in government spending driven by declines in health and heatwave-related school closures in June.
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