2 weeks ago
UK economic growth slows to 0.4% in second quarter
The United Kingdom is a country where grown-ups work, make things, and help each other, and how much they make in total is called the economy.
In the spring of 2026, the economy grew, but a little more slowly than before.
A big office called the Office for National Statistics measures this and announced that growth slowed down.
It still said the economy was doing pretty well and staying strong.
Some difficult things happened at the same time, like a war between the US and Iran that made energy cost more.
There was also a change in government: the prime minister at the time, Keir Starmer, quit, and a new prime minister named Andy Burnham took over.
The new finance minister, John Healey, is in charge of making a special money plan called a budget in October.
Some business people say high costs are squeezing companies, even though the overall numbers look okay.
The leaders say they want to help families and make the country stronger.
The UK's gross domestic product grew 0.4% in the second quarter of 2026, slowing from 0.6% in the first quarter.
The Office for National Statistics said output remained "robust" despite domestic political unrest and the fallout from the US-Iran war.
Keir Starmer resigned as prime minister in late June and was replaced by Andy Burnham about a month later, as Labour was overtaken in opinion polls by Reform UK.
Services output grew 0.5% in the quarter, construction expanded, and production flattened.
New finance minister John Healey faces his first budget on October 28, which the British Chambers of Commerce says must be "a game changer" for growth.
- Who
- The Office for National Statistics published the data; the new Labour government led by Prime Minister Andy Burnham and finance minister John Healey oversees the economy.
- What
- UK economic growth slowed to 0.4% in the second quarter, down from 0.6% in the first quarter.
- Where
- United Kingdom.
- When
- Second quarter (April-June) of 2026, with the data released on a Thursday in mid-2026.
- Why
- Output slowed after a strong start to 2026 while remaining relatively robust, with the US-Iran war pushing energy costs and inflation higher and businesses citing cost pressures.
Government and ONS view
Business lobby view
Health of the economy
Government and ONS view
The ONS says output remained "relatively robust" and growth stayed resilient despite shocks, with services as the main driver.
Business lobby view
The British Chambers of Commerce says headline figures disguise "a cocktail of cost pressures choking long-term business growth" and demands a game-changing budget.
Key facts
- Q2 GDP growth
- 0.4%
- Q1 GDP growth
- 0.6%
- Q2 services growth
- 0.5%
- June monthly GDP growth
- 0.3%
- Data source
- Office for National Statistics (ONS)
- Prime minister
- Andy Burnham
- Finance minister
- John Healey
- First budget date
- October 28
Quotes
Stuart Morrison
Research manager, British Chambers of Commerce
“I know people are worried about the impact of the conflict in the Middle East on their cost of living, which has been too high for too long and it has added pressure on British businesses.”
easterneye.biz
“Growth (overall) slowed in the second quarter of the year, following a strong start to 2026, but remained relatively robust.”
easterneye.biz
Sources
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