UK Economy Defies War Recessions with Slight Growth in Q2

The UK economy is expected to have grown for another quarter, despite facing challenges from the Iran war. Figures from the Office for National Statistics will show a 0.4% increase in GDP for the second quarter, between April and June.

This would be the continuation of growth after a 0.6% rise in GDP for the first three months of 2026. Rob Wood, chief UK economist for Pantheon Macroeconomics, said that this shows 'the big picture is that the economy has remained resilient to the hit from the war in Iran'.

The services sector, which dominates the UK economy, strengthened in May due to growth in professional services and scientific research and development. However, a weaker picture may emerge in June as heatwaves bring mixed results for businesses, with some industries coming under increasing pressure.