UK Q2 GDP Grows 0.4% Matching Market Expectations

Key Facts

The UK economy expanded by 0.4% in the second quarter of 2026, matching market expectations exactly. This preliminary GDP reading represents a slight cooling from the 0.6% growth recorded in the first quarter but confirms a steady economic trajectory. On an annual basis, the economy is estimated to be 1.2% larger than it was during the same period last year, according to official data.

Growth during the quarter was primarily fueled by the services sector, which saw a 0.5% increase, although this was a deceleration from the 0.8% growth seen in Q1. In contrast, production output remained flat, showing no growth, while the construction sector managed a 0.3% rise. These figures highlight the economy's continued reliance on services to offset stagnation in industrial production, according to analyst reports.

Looking at recent economic indicators, the GDP data follows a UK Construction PMI reading of 44.7 reported on August 6, 2026. Since the growth figures aligned perfectly with consensus, there is no immediate pressure on the Bank of England to deviate from its established monetary policy path.