Britain's economy grew 0.4% in the second quarter of 2026, a step down from the 0.6% pace in the first three months of the year. Year-on-year, real GDP was 1.2% higher than the same quarter a year ago, according to figures released today by the Office for National Statistics.
Services and construction carry the quarter
The services sector expanded 0.5% in the April-to-June period, the ONS said, while construction rose 0.3%. Production, which includes manufacturing and energy, showed no growth at all. That left the headline number reliant on the services sector, which accounts for the bulk of UK output.
On the spending side, the 0.4% rise in real GDP was mainly driven by increases in gross fixed capital formation and household consumption. Investment and consumer spending did the heavy lifting, though the ONS did not break out the individual contributions.
Monthly path shows a stutter
The quarterly figure hides a weaker end to the period. Monthly GDP rose 0.3% in June, but was flat in May, revised down from an earlier estimate of 0.1% growth. April saw a 0.1% contraction. So the economy entered the summer with some momentum, but the spring months were uneven.
The revision to May is notable. It means the second quarter's growth was more front-loaded than first thought, and the slowdown in May was sharper than previously reported.
Nominal growth and prices
Nominal GDP — the cash value of goods and services without adjusting for inflation — increased 0.8% in the quarter and was 4.1% higher than a year earlier. The implied GDP deflator, a broad measure of price pressures in the economy, rose 2.9% compared with the same quarter last year. That's a touch above the Bank of England's 2% inflation target, though the deflator covers a wider range of prices than the CPI.
Real GDP per head, a rough proxy for living standards, rose 0.4% in the quarter and was 1.0% higher than a year ago. That suggests population growth hasn't eaten away all the gains.
The ONS will publish a 'Blue Book 2026: GDP impacts and expenditure components' article on 20 August 2026. That's the annual revision to the national accounts. Then on 30 September 2026, the agency will release an updated Quarterly national accounts bulletin. That will give a fuller picture of how the second quarter actually looked after the usual data revisions.
Until then, the key question is whether the June bounce can carry into the third quarter. The flat May and the downward revision to that month suggest the recovery is still patchy.
