UK economy grows 0.4% as pace of expansion slows
The UK economy continued to grow between April and June despite pressure from higher energy costs, with services and technology-related industries helping support output.
By Sky News
The UK economy continued to grow between April and June, although the pace of expansion slowed following a stronger start to the year.
Gross domestic product increased by 0.4% during the three months to June compared with the previous three months, according to figures released by the Office for National Statistics.
The latest figures mark a slowdown from the growth recorded earlier in 2026 but show that the economy continued expanding despite pressure from higher energy costs associated with the conflict in the Middle East.
Services, which make up the largest part of the UK economy, provided the biggest contribution to growth.
Output in the sector increased by 0.5% during the three months to June.
Information and communication performed particularly strongly, increasing by 2.7%, driven largely by a 3.7% rise in computer programming, consultancy and related activities.
Construction output grew by 0.3% over the same period, while production recorded no overall growth.
The monthly figures provided a more encouraging end to the quarter.
GDP increased by 0.3% in June after showing no growth in May and falling by 0.1% in April.
Services output rose by 0.4% during June, although this was partly offset by a 0.2% fall in production and a 0.1% decline in construction.
The June increase was stronger than economists had expected.
ONS director of economic statistics Liz McKeown said the economy had remained relatively robust following its strong start to 2026.
Computer programming and advertising were among the areas continuing to perform strongly, while wholesale activity was identified as a notable area of weakness.
Manufacturing presented a mixed picture.
Output increased by 1% across the three months to June, helped by pharmaceutical manufacturing, although manufacturing fell by 0.5% when June was considered on its own.
The latest figures also provide an indication of how the economy has performed while businesses and households have faced higher costs arising from the conflict in the Middle East.
Economists have warned that higher oil and gas prices can affect the UK because the country is a net importer of energy, potentially increasing costs for businesses and households.
Despite those pressures, the economy has now recorded seven consecutive periods of growth when measured on a rolling three-month basis.
Compared with the same three months of 2025, GDP was 1.1% higher.
The figures nevertheless show that momentum has moderated from earlier in the year.
For businesses, the contrasting performance between sectors is also significant, with technology-related services continuing to expand strongly while areas including construction, production and wholesale have experienced weaker conditions.
The ONS cautions that early GDP estimates can be revised as additional economic information becomes available.
Its next monthly GDP update is scheduled for September.