UK Economy Sees Modest Growth in Q2, But Challenges Ahead

According to figures released by the Office for National Statistics (ONS), the UK economy grew by 0.4% in the second quarter of 2026, a modest increase after contracting by 0.1% in April and growing by only 0.1% in May.

The GDP figure for June was particularly strong, with growth of 0.3%, despite concerns over the rising cost of oil due to conflict in the Middle East.

Services were once again the main driver of growth, while production remained relatively unchanged and construction also grew.

New Chancellor John Healey said that the government is looking for ways to bolster the economy, particularly as people are worried about the impact of the conflict on their cost of living, which has been too high for too long.