UK Economy Posts Marginal Growth in Q2 Amid Warm Weather and World Cup Boost

The UK economy saw marginal growth in Q2, expanding by 0.4% compared to the three months to March, according to the Office for National Statistics (ONS). This marked the seventh consecutive period of three-month-on-three-month growth, although at a slower pace than previous periods.

Services output was the largest contributor to the growth, increasing by 0.5% in Q2. Production output remained unchanged over the same period. Compared to the same three months in 2025, real GDP was 1.1% higher.

CBI senior lead economist Ben Jones attributed the stronger-than-expected growth to warm weather and the start of the World Cup, which boosted consumer spending. However, he cautioned that uncertainty surrounding the new government and the Autumn Budget may encourage businesses to hold back investment plans, while continued instability in the Middle East exposes the economy to volatility.

Jones emphasized the importance of building on the economy's recent resilience and delivering sustainable growth by tackling high industrial electricity costs, reforming business rates, and supporting higher real wages and living standards.