Forex
UK Economy Grinds to Halt Amid Second Quarter Growth Collapse
The UK economy has ground to a near-halt in the second quarter of 2026, with gross domestic product growth plummeting from a robust 0.6% in Q1.
The sharp deceleration aligns precisely with downward revisions from the National Institute of Economic and Social Research (NIESR), placing the Bank of England in an impossible bind as it weighs interest rate cuts against persistent services inflation and stagnant productivity.
The services sector, which accounts for 80% of UK economic output, contracted marginally in May and June due to weak retail sales and a slowdown in professional services.