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The Markets
by Proactive
Proactive UK has moved.
Growth stocks coverage continues on proactiveinvestors.com
Go to Proactive UK
The Markets
by Proactive
Proactive UK has moved.
Growth stocks coverage continues on .com
Go to Proactive UK
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The Markets
by Proactive
Proactive UK has moved.
Growth stocks coverage continues on .com
Go to Proactive UK

Finance

Economy slows in second quarter, but June growth beats forecasts

The UK economy grew 0.4% in the second quarter, a slowdown from the first three months of the year but a firmer outcome than the backdrop had suggested.

Gross domestic product, the broadest measure of everything produced in the economy, had expanded 0.6% in the first quarter, according to the Office for National Statistics (ONS).

The quarter spanned the war in Iran, which had raised fears of an energy price shock and a hit to business confidence.

Output was 1.2% higher than in the same quarter a year earlier.

Liz McKeown, director of economic statistics at the ONS, said the economy remained relatively robust after a strong start to 2026.

June was the stronger month within the quarter, with monthly GDP up 0.3% against forecasts of no growth in a Reuters poll of economists.

May was revised down to zero growth from 0.1%, while an earlier fall of 0.1% in April was left unchanged.

Services, the largest part of the economy, grew 0.5% and did most of the work.

Information and communication was the standout, up 2.7%, driven by a 3.7% rise in computer programming and consultancy.

Professional, scientific and technical activities rose 1.7%, helped by advertising and market research, up 4.3%.

Administrative and support services were the biggest drag, down 0.9%.

Production was flat over the quarter. Manufacturing rose 1.0%, led by a 4.2% increase in pharmaceuticals.

Those gains were offset by a 2.3% fall in electricity and gas supply and a 3.7% drop in water and waste.

Construction grew 0.3%, though the sector remains 2.0% smaller than a year ago, with infrastructure new work up 1.9%.

GDP per head rose 0.4% in the quarter and is 1.0% higher than a year earlier.

The implied GDP deflator, the broadest measure of domestic price pressure, was 2.9% higher than a year ago.

Rachel Reeves was chancellor throughout the period covered by the figures.

No revisions were made to previously published data, with back figures from 1997 to 2024 due on 20 August.

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