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Home ›› Business ›› Economy ›› UK economic growth slows to 0.4% in second quarter, official data shows

UK economic growth slows to 0.4% in second quarter, official data shows

UK economic growth slowed to 0.4% in Q2 2026, in line with economists' expectations and below the 0.6% seen in Q1. The Office for National Statistics said manufacturing propelled growth, with some businesses citing good weather and sporting events as a positive effect in June.

iG
iGEN Editorial
August 13, 2026
UK economic growth slows to 0.4% in second quarter, official data shows

UK economic growth slowed to 0.4% between April and June, according to official data from the Office for National Statistics (ONS), as reported by BBC News on 13 August 2026. The figure, which was in line with economists' expectations, is below the 0.6% expansion recorded in the first three months of the year.

Growth slows from first-quarter pace

The second-quarter reading marks a deceleration from the 0.6% expansion the UK economy recorded between January and March, according to BBC News. Although growth remained positive, the slowdown aligns with economists' forecasts, suggesting the softer pace was widely anticipated.

Period GDP growth Source
Q1 2026 (Jan–Mar) 0.6% ONS via BBC News
Q2 2026 (Apr–Jun) 0.4% ONS via BBC News

The table above shows the quarterly growth figures as reported by the ONS and carried by BBC News. The Q2 result keeps the UK in expansion territory, though at a reduced rate compared with the opening quarter.

Manufacturing and seasonal tailwinds

Manufacturing propelled growth in the second quarter, BBC News reported, making the sector the primary driver of the quarterly figure. The ONS also noted that some businesses reported that "good weather and sporting events may have had a positive effect" in June, pointing to temporary tailwinds that may have supported activity at the end of the quarter.

Good weather and sporting events may have had a positive effect in June. — Some businesses, as reported by the ONS via BBC News

For executives tracking UK operations, the mix of manufacturing strength and one-off seasonal factors matters. A sector-led expansion driven by industry rather than services could have different implications for supply chains and capital expenditure than a broader-based recovery.

What the second-quarter data means for executives

The UK economy delivered its second consecutive quarter of growth, following the 0.6% pace in Q1, according to the ONS data. That gives corporate planners a baseline of positive, though moderating, momentum. Because the 0.4% figure met economists' expectations, it reduces the likelihood of sudden forecast revisions, according to the BBC's report.

For boards and M&A advisors, predictable growth can support revenue projections for UK-based assets. The slowdown from 0.6% to 0.4% suggests demand is cooling, which may warrant more conservative assumptions in budgets and transaction models. The ONS's comment on June's weather and sporting events also signals that some of the quarter's activity was boosted by temporary factors rather than structural demand.

Manufacturing's role as the growth engine is a notable detail for industrial companies and investors evaluating UK capacity. The sector's performance in Q2, combined with the overall slowdown, provides context for earnings calls and strategy reviews, as executives weigh the momentum of the UK economy against their own operational data.


Sources: BBC-Business

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