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UK economy grows 0.4% in Q2 2026 amid tech boom
The United Kingdom's economy expanded by 0.4% in the second quarter of 2026, according to preliminary data from the Office for National Statistics (ONS). This growth represents a slowdown from the 0.6% increase recorded in the first quarter. The services sector remained the primary driver of expansion, growing by 0.5% during the quarter.
In June, the economy unexpectedly grew by 0.3%, surpassing economist expectations of flat output. This monthly rebound was attributed to several factors, including a period of warmer weather, the start of the men’s soccer World Cup, and a temporary respite in energy price pressures due to a ceasefire in the Middle East. In contrast, industrial production saw a decline of 0.2% in June.
The information and communications sector was a significant contributor, accounting for nearly half of the total economic expansion. Within this sector, computer programming and consultancy activities grew by 3.7%. This growth was supported by increased investment in computer hardware and ICT equipment, which rose to £22.1 billion in the second quarter.
Despite the robust performance, officials and economists have issued warnings. Treasury modelling suggests that if disruptions in the Strait of Hormuz related to the Iran war continue, UK GDP growth could slow to as low as 0.3% in 2027. Prime Minister Andy Burnham and Chancellor John Healey have pledged to address rising business and household costs amidst a difficult financial outlook.
Entities
Andy Burnham · Bank of England · John Healey · Keir Starmer · Liz McKeown · Office for National Statistics · United Kingdom
Claims
What the coverage asserts, and how many sources carry each claim.
- [● 4 SOURCES] The information and communications sector contributed nearly half of the UK's Q2 economic expansion. wsau.com · bbc.bm · influencermagazine.uk · meeco.kr
- [● 19 SOURCES] The services sector was the primary driver of economic growth in the second quarter. diariofinanciero.com · www.gbnews.com · www.standard.co.uk · www.easterneye.biz · mix929.com · +12 more
- [● 20 SOURCES] UK GDP grew by 0.3% in June. diariofinanciero.com · www.gbnews.com · www.standard.co.uk · www.easterneye.biz · mix929.com · +13 more
- [● 5 SOURCES] Treasury modelling suggests UK GDP growth could fall to 0.3% in 2027 if Middle East disruptions continue. www.gbnews.com · www.standard.co.uk · www.easterneye.biz · www.cityam.com
- [● 23 SOURCES] The UK economy grew by 0.4% in the second quarter of 2026. diariofinanciero.com · www.gbnews.com · www.standard.co.uk · www.easterneye.biz · mix929.com · +16 more
- [○ 1 SOURCE] The construction sector grew by 0.2% in the second quarter. diariofinanciero.com
- [● 3 SOURCES] Computer programming and consultancy output grew by 3.7% in the second quarter. bbc.bm · influencermagazine.uk · meeco.kr
- [● 2 SOURCES] Spending on plant and machinery rose to £22.1 billion in the second quarter. bbc.bm · meeco.kr