UK gross domestic product expanded by 0.4% in the second quarter of 2026, according to preliminary data released by the Office for National Statistics (ONS) on Thursday. The figure matched economists’ expectations.
However, growth slowed from the 0.6% increase recorded in the first quarter. Despite the weaker quarterly pace, some parts of the report pointed to improving momentum toward the end of the period.
June GDP Beats Expectations
The strongest signal came from the monthly GDP data for June. The UK economy grew by 0.3% during the month, significantly outperforming expectations for a small decline.
May GDP was unchanged, after being revised down from an earlier estimate of 0.1% growth. Meanwhile, April remained unrevised at a 0.1% contraction.
The stronger June performance therefore helped compensate for a weak start to the quarter, even though overall Q2 economic growth remained below the pace recorded during the first three months of the year.
Services and Construction Support UK Growth
The ONS reported that the UK’s large services sector expanded by 0.5% during the second quarter, making it one of the main contributors to economic growth.
Construction activity also increased, rising 0.3% over the period.
Production output, however, showed no overall growth. Declines in electricity, gas and water supply offset improvements in manufacturing activity.
Investment and Household Spending Increase
Looking at expenditure, gross fixed capital formation rose 1.2%, providing an important boost to economic activity.
Household consumption also increased by 0.3%, suggesting consumers continued to support growth despite wider economic pressures.
Government consumption moved in the opposite direction, falling 0.3%. The decline partly reflected lower spending in health and education.
Education spending may also have been affected by school closures associated with the June heatwave.
GDP Per Capita Shows Improvement
Real GDP per person, which can provide a clearer indication of changes in living standards, increased by 0.4% during the quarter.
Compared with the same period a year earlier, real GDP per head was 1% higher.
Nominal GDP, which measures economic output without adjusting for inflation, increased 0.8% during Q2 and stood 4.1% above its level a year earlier.
The ONS said much of the increase in nominal GDP was linked to higher gross operating surplus.
Overall, the latest UK GDP figures show that economic growth lost some momentum during the second quarter of 2026. However, the stronger-than-expected June rebound, combined with continued expansion in services, construction and investment, provides a more positive signal heading into the third quarter.
