The UK economy grew by 0.4% in the second quarter of 2026, slowing from 0.6% in the first quarter, according to official figures, with the Iran war's impact on energy prices cited as a factor.
Key facts
- GDP expanded by 0.4% in the three months to June, according to the ONS.
- Growth slowed from 0.6% in the first quarter of the year.
- The figure was in line with City economists' expectations, the Guardian reported.
- Some firms reported that hot weather and sports helped growth in June, according to the BBC.
- Experts have warned of challenges in the coming months.
Economic growth in the UK slowed in the second quarter of the year, according to official figures released on 13 August. The Office for National Statistics (ONS) said gross domestic product (GDP) expanded by 0.4% in the three months to June, down from 0.6% in the first quarter.
The Guardian reported that the slowdown came as the disruption unleashed by the Iran war began to take its toll, with the conflict pushing up energy prices. The 0.4% figure was in line with City economists’ expectations, according to the outlet.
Despite the overall slowdown, some firms pointed to positive factors during the period. According to the BBC, some businesses reported that hot weather and sports helped support growth in June.
However, the outlook is not entirely upbeat. The BBC reported that experts have warned of challenges in the coming months, suggesting the economy could face further headwinds beyond the second quarter.
The figures offer a snapshot of an economy that, while still growing, is expanding at a slower pace than earlier in the year. The comparison between the 0.6% first-quarter growth and the 0.4% recorded for the three months to June illustrates the deceleration.
The data comes as external pressures, particularly those linked to the Iran war and its effect on energy costs, weigh on the broader economic picture, according to the reporting from the Guardian.
Why it matters
GDP figures are a key measure of the health of the economy and influence decisions on interest rates, government spending and household budgets. A slowdown driven partly by rising energy prices can affect the cost of living and business confidence in the months ahead.
Frequently asked questions
How much did the UK economy grow in the second quarter?
According to the ONS, GDP expanded by 0.4% in the three months to June, down from 0.6% in the first quarter.
Why did growth slow down?
The Guardian reported that the slowdown came as disruption from the Iran war began to take its toll, pushing up energy prices.
Were there any positive factors for the economy?
According to the BBC, some firms reported that hot weather and sports helped support growth in June.