UK Economy Grew 0.4% Between April and June 2026, Led by Services
UK GDP rose 0.4% in the second quarter of 2026, after 0.6% in the first quarter, with services up 0.5% and production flat. GDP was 1.2% higher than a year earlier.
By Entrepreneur Group · Published · Updated
The UK economy grew 0.4% between April and June 2026, according to the first estimate from the Office for National Statistics, published on 13 August. That followed 0.6% growth in the first quarter. GDP was 1.2% higher than in the same quarter of 2025.
Growth was concentrated in services. Production was flat and construction grew modestly, so the picture for founders depends a great deal on which part of the economy they sell into.
The main figures
- Services: up 0.5% in the quarter, after 0.8% in the first quarter.
- Production: flat (0.0%), after 0.2% growth in the first quarter.
- Construction: up 0.3%.
- GDP per head: up 0.4% on the quarter and 1.0% on a year earlier.
Month by month, the quarter started weakly. GDP fell 0.1% in April, showed no growth in May (revised down from 0.1%) and then rose 0.3% in June. The ONS said this release contained no revisions to earlier quarters, with wider revisions back to 1997 due in its Blue Book 2026 article on 20 August.
How the Bank of England read it
When the Bank of England's Monetary Policy Committee met in September, its minutes described second-quarter growth of 0.4% as slightly above its expectations. Its staff projected a further 0.4% in the third quarter, while noting that business surveys pointed to somewhat weaker growth.
The same minutes put unemployment at an estimated 4.9% in the three months to July and said labour demand "had remained weak". So steady output growth has not yet translated into a tighter jobs market.
What it means for founders
This section is editorial guidance.
- Services-led growth. If you sell business or consumer services, the quarter's data is supportive. If you sell into manufacturing or construction, expect customers to stay cautious.
- Hiring. A labour market with slack can make it easier to recruit. It can also mean weaker consumer spending, so plan hiring against your own pipeline, not the headline GDP figure.
- Watch the monthly path. A weak April and flat May followed by a stronger June means the quarter ended with more momentum than it started with. If your own sales followed a similar pattern, the summer may be a better guide to the autumn than the spring.
- Productivity matters for investors. GDP per head rose 1.0% on the year, slightly slower than total GDP. If you are raising money, investors will look at whether your own revenue per employee is improving, not just total revenue.
- One quarter is not a trend. First estimates are often revised. Use the figures as context for planning and fundraising narratives, not as forecasts for your sector.
Frequently asked questions
How much did the UK economy grow in Q2 2026?
UK GDP grew 0.4% between April and June 2026, according to the ONS first estimate published on 13 August 2026. It had grown 0.6% in the first quarter.
Which sectors drove UK growth in Q2 2026?
Services grew 0.5% and construction 0.3%, while production was flat. GDP fell 0.1% in April, was flat in May and rose 0.3% in June.
Is the UK economy bigger than a year ago?
Yes. The ONS estimates GDP in April to June 2026 was 1.2% higher than in the same quarter of 2025, and GDP per head was 1.0% higher.
Sources
- ONS: GDP first quarterly estimate, UK: April to June 2026 (13 August 2026) (reviewed 27 October 2026)
- Bank of England: Monetary Policy Summary and minutes, September 2026 (reviewed 27 October 2026)