UK GDP grows 0.3% in June, beating forecasts, supporting 0.4% Q2 expansion
Macro
The UK Office for National Statistics reported that the British economy expanded 0.3% in June, defying analyst expectations of no growth, after businesses benefited from a temporary ceasefire in the Iran war that eased energy price pressures. Combined with positive factors from the World Cup and warmer weather, the UK economy grew 0.4% in the second quarter and is on track to be the strongest among the Group of Seven leading industrial nations in the first half of 2026. The services sector expanded 0.4%, the main driver of growth, while industrial production contracted 0.2% and construction shrank 0.1%. However, economists warned that the economic outlook for the second half of the year may slow amid renewed war tensions and the possibility of tax increases.
