Economy & Trade
UK economy slows to 0.4% in second quarter
The UK economy grew 0.4% in the April-June period, down from 0.6% in the first quarter, the Office for National Statistics said Thursday.
The official figures showed slower economic output growth in the second quarter while Britain faced political unrest at home and higher energy costs linked to the US-Iran war.
The ONS said services output grew 0.5% in the second quarter and was again the main driver of growth. Construction also expanded, while production was flat.
“Growth slowed in the second quarter of the year, following a strong start to 2026, but remained relatively robust,” ONS director of economic statistics Liz McKeown said.
Britain has also been navigating a recent change in leadership. Keir Starmer resigned as prime minister in late June and was replaced around a month later by Andy Burnham, as Labour was overtaken in opinion polls by Reform UK.
Finance minister John Healey said people were worried about the impact of the Middle East conflict on living costs and that it had added pressure on British businesses.
Update
The services sector grew 0.5% in the second quarter, construction expanded and production was flat.
ONS director Liz McKeown said services were again the main driver of growth.
John Healey, the new finance minister, commented on the cost-of-living pressure linked to the Middle East conflict.
The item adds context about Keir Starmer resigning in late June and Andy Burnham replacing him about a month later.
Source note: AFP news report published on 13 August 2026 at 06:40:33 UTC.
Update
The Office for National Statistics said GDP rose 0.4% in the April-June period.
GDP had expanded 0.6% in the first quarter.
Source note: AFP news report published on 13 August 2026 at 06:18:30 UTC.
Source
AFP news report published on .