The UK economy expanded in the second quarter of 2026, although the pace of growth slowed, highlighting the fragile nature of the recovery.
According to the Office for National Statistics (ONS), real GDP increased by 0.4% between April and June 2026, following stronger growth of 0.6% in the first quarter.
The economy was 1.2% larger than a year earlier, while GDP per head rose 0.4% during the quarter and was 1.0% higher year-on-year.
Service growth
Services remained the main engine of growth, expanding by 0.5%, while construction grew by 0.3%. Production, however, recorded no growth, underlining the uneven nature of the recovery.
The monthly figures provide a mixed picture. GDP fell 0.1% in April 2026, was flat in May 2026 and then rose 0.3% in June 2026, suggesting some momentum returned towards the end of the quarter.
Trade deficit
However, businesses and policymakers face significant challenges. The ONS reports that the UK’s total goods and services trade deficit widened to £8.0 billion in Q2, while goods exports fell sharply in June 2026.
The figures therefore offer cautious encouragement rather than a decisive economic breakthrough.
With growth slowing and trade pressures persisting, the coming months will test whether the UK recovery can build sustainable momentum.
NB ONS figures are the first quarterly estimate and may be revised at a later date.