UK GDP Slows to 0.4% in Q2 Despite June Boost From World Cup and Heatwave

The UK economy expanded by 0.4% in the second quarter of 2026, moderating from the 0.6% growth recorded in the opening quarter of the year, according to data released by the Office for National Statistics (ONS).

Despite the quarterly deceleration, output was bolstered by an unexpected 0.3% rebound in June alone, recovering from flat 0.0% growth in May. The mid-year lift came as warmer weather and major sporting events provided a timely boost to consumer-facing sectors.

Sector Performance Across Q2

The dominant services sector remained the primary engine of expansion between April and June, increasing by 0.5%. Within services, the information and communication industry led the way with a 2.7% surge, primarily powered by computer programming activities.

Construction activity grew by 0.3% over the quarter, while industrial production output stalled, recording zero growth over the three-month period.

The World Cup and Heatwave Effect

Businesses reported that the FIFA World Cup, which kicked off on 11 June 2026, drove significant revenue increases across several industries. Notable gains were reported in alcohol manufacturing, wholesale trade, food and beverage services, publishing, television production, and advertising.

At the same time, high temperatures and heatwaves generated mixed economic effects across the country. The hot weather spurred retail sales, accommodation bookings, and purchases of fans and air-conditioning equipment. However, the extreme heat also created operational disruptions, weighing on construction work and prompting temporary school closures.

Global Comparison

On an annualized basis, the UK's second-quarter GDP growth reached 1.7%. That pace positioned the British economy slightly ahead of the United States, which posted 1.5% annualized growth, and just behind the eurozone's 1.8% expansion over the same period.