UK economic growth accelerated to 0.4% in the second quarter of 2026, driven by World Cup-related spending and hot weather, according to official figures. The growth, reported by the Office for National Statistics (ONS), surpassed City forecasts but slowed from the 0.6% expansion recorded in the first three months of the year.
Services sector leads growth
The ONS data indicated that businesses across the service sector experienced buoyant trade, thanks to extreme hot weather and the start of the World Cup football tournament. June saw a 0.3% month-on-month increase in GDP, against expectations for a flat performance.
Ruth Gregory, deputy chief UK economist at Capital Economics, said: “Some of the rises in arts/entertainment activity, information/communication and in accommodation/food services in June probably had a lot to do with temporary factors, such as the World Cup and the unseasonably warm weather.”
Political reaction
Aaron Bright, investment analyst at IG, commented: “The World Cup gave hospitality, retail and the pub trade a patriotic lift, though it ultimately ended in bitter disappointment for England and Scotland, and one-off boosts of that kind are no foundation for consistent, durable growth. Underneath the headline the picture is less reassuring; production managed no growth across the quarter and the data was largely being propped up by services.”
Chancellor John Healey said: “People are worried about the impact of the conflict in the Middle East on their cost of living, which has been too high for too long and it has added pressure on British businesses. This is an active, hands-on government, putting British interests first – giving breathing space to those feeling the strain, making our country more resilient and bringing hope back. We’ve seen the fastest growth in the G7 this year, but we now need to double down and drive growth in every postcode.”
Shadow Chancellor Sir Mel Stride said: “Our economy is struggling because Labour have no plan for growth. Labour have mismanaged the economy with their tax and borrowing spree, leaving it weak and vulnerable to the effects of shocks like the Iran War. Yet Andy Burnham is gearing up to tax and borrow even more, doubling down on those failures.”
The June rise followed flat growth in May, revised down from 0.1% growth previously estimated, and a 0.1% contraction in April. Liz McKeown, ONS director of economic statistics, said: “Growth slowed in the second quarter of the year, following a strong start to 2026, but remained relatively robust. Services also drove growth in June, with some businesses reporting that good weather and sporting events may have had a positive impact that month.”
