# UK economic growth and resilience > Live situation record from CLSTR: https://clstr.news/situations/uk-economic-growth-and-resilience > Updated: 2026-08-08T22:53:19.000Z. Sources: 23. Developments: 2. The United Kingdom's economy has demonstrated growth through the second quarter of 2026. In May, GDP rose by 0.1%, driven largely by a 0.3% increase in the services sector, including computer programming, advertising, and pharmaceuticals, despite contractions in industrial production and construction. By the second quarter, the economy showed resilience with a projected GDP increase of 0.4%, following a 0.6% increase in the first quarter. While the manufacturing sector continued to expand through July, the pace of that growth slowed. Businesses have largely managed to navigate supply chain issues and price pressures linked to geopolitical tensions in the Middle East and Iran, though certain sectors face increasing pressure from environmental factors and shifting consumer habits. Throughout this period, economic performance remains subject to risks from geopolitical volatility, which has historically impacted energy prices and supply chains, as well as uncertainty regarding domestic political transitions. ## Claims - China's consumer price index (CPI) rose 0.5% year-on-year in July 2026. (corroborated by 12 sources) - China's producer price index (PPI) rose 3.5% year-on-year in July 2026. (corroborated by 11 sources) - Core CPI in China rose 0.9% year-on-year in July. (corroborated by 9 sources) - The July CPI figures were below the expected 0.8% growth rate. (corroborated by 4 sources) - The drop in CPI year-on-year growth was primarily due to a decline in gasoline price increases. (corroborated by 3 sources) - China's exports increased 23.9% in dollar terms in July 2026. (corroborated by 3 sources) - AI-related technology and electric vehicles drove export growth in China. (corroborated by 3 sources) - The PPI decreased 0.7% month-on-month in July. (corroborated by 2 sources) - China's imports increased 27.5% year-on-year in July 2026. (corroborated by 2 sources) - China's manufacturing PMI fell to 49.2 in July. (single source) ## Timeline ### 2026-08-08: China inflation cools in July amid weak domestic demand China's July 2026 inflation cooled more than expected, with CPI rising 0.5% and PPI rising 3.5%. While high-tech exports surged, weak domestic demand continues to pose deflationary risks. 23 sources. https://clstr.news/cluster/uk-economy-shows-resilience-with-projected-q2-growth ### 2026-07-16: UK economy posts modest 0.1% monthly growth in May 2026 UK GDP grew 0.1% in May 2026, led by services, amid political transition to PM Andy Burnham and rising energy‑price risks. 5 sources. https://clstr.news/cluster/uk-economy-posts-modest-01-growth-in-may-amid-political-transition --- Cite as: UK economic growth and resilience. CLSTR, https://clstr.news/situations/uk-economic-growth-and-resilience