The UK economy demonstrated steady growth in the second quarter of 2026, with the services sector leading the way. Find out how different industries contributed to this economic expansion.
The United Kingdom’s economy continued its upward trajectory in the second quarter of 2026, with real gross domestic product (GDP) increasing by 0.4%. This growth follows a 0.6% increase in the first quarter of the year, indicating a stable economic environment.
The services sector was the primary driver of this growth, expanding by 0.5% while the construction sector saw a 0.3% increase and the production sector remained flat.
Real GDP per head also rose by 0.4% in Q2 2026, marking a 1.0% increase compared to the same quarter a year ago.
This positive trend underscores the UK’s economic resilience and steady progress. The Office for National Statistics (ONS) confirmed that there were no revisions to previously published GDP data in this quarterly release, aligning with the National Accounts Revisions Policy.
The Services Sector Leads Economic Growth
The services sector was the standout performer in Q2 2026, contributing significantly to the With an increase of 0.5% this sector outpaced both construction and production. Non-consumer-facing services, such as business-facing services, grew by 0.5% while consumer-facing services saw a 0.3% rise.
Key contributors to the services sector’s growth included information and communication which surged by 2.7% and professional, scientific, and technical activities which increased by 1.7%. Notably, computer programming, consultancy, and related activities grew by 3.7% while advertising and market research saw a 4.3% rise. However, administrative and support service activities experienced a decline of 0.9% primarily due to falls in office administrative and security activities.
Construction and Production Sectors Show Mixed Results
The construction sector demonstrated modest growth, increasing by 0.3% in Q2 2026. This growth was driven by both new work and repair and maintenance activities, which rose by 0.4% and 0.2% respectively. Infrastructure new work and public housing repair and maintenance were the largest positive contributors within this sector.
In contrast, the production sector showed no growth in Q2 2026, following a 0.2% increase in the previous quarter. While manufacturing and mining and quarrying saw increases of 1.0% and 0.2% respectively, these gains were offset by declines in electricity, gas, steam, and air conditioning supply, which fell by 2.3% and water supply and waste management activities, which dropped by 3.7%.
Expenditure and Income Insights
Expenditure in Q2 2026 grew by 0.4% primarily driven by increases in gross fixed capital formation and household consumption. Household final consumption expenditure rose by 0.3% with significant contributions from recreation and culture, and household goods and services. However, net tourism made a negative contribution to household consumption, although this was offset within trade.
Nominal GDP grew by 0.8% in Q2 2026, marking a 4.1% increase compared to the same quarter a year ago. The implied GDP deflator, a broad measure of inflation, increased by 2.9% reflecting changes in the price of all goods and services that make up GDP. This increase was primarily driven by household expenditure, exports, and gross capital formation.
The UK’s trade deficit for goods and services was estimated at 2.1% of nominal GDP in Q2 2026. Excluding non-monetary gold and other precious metals, the trade deficit was 1.0% of nominal GDP. Export volumes increased by 0.5% with significant contributions from chemicals and other business service activities. Import volumes also rose by 0.5% driven by increases in fuels and transportation.
Looking ahead, the ONS will release data revisions from 1997 to 2026 in the upcoming Blue Book 2026: GDP impacts and expenditure components article on 20 August 2026. Any additional updates to data from 2026 onwards will be published in the Quarterly national accounts bulletin on 30 September 2026.
