UK Economy Slows to 0.4 Per Cent Growth in Second Quarter

The UK economy has slowed down in the second quarter of 2026, according to figures released by the Office for National Statistics. The economy grew by 0.4 per cent in the three months to June, slightly lower than the 0.6 per cent recorded in the first quarter.

The growth was driven by the services sector, which expanded by 0.5 per cent, and construction, which saw a 0.4 per cent increase. Neil Wilson, investor strategist at Saxo UK, described the figures as 'relatively robust', noting that they showed the economy is holding up despite pressures from the conflict in the Middle East.

David Smith, portfolio manager at Henderson High Income, said the slowdown was in line with expectations and attributed it to uncertainty ahead of the budget. He warned that a prolonged period of speculation over future tax and spending plans could weigh on consumer and business confidence.