The UK economy expanded by 0.4% quarter-on-quarter in Q2 2026, slowing from 0.6% growth in Q1, in line with market expectations, preliminary estimates showed. Services output rose 0.5%, led by information and communication, which increased 2.7%, and professional, scientific and technical activities, which grew 1.7%. Production showed no growth as a 1.0% rise in manufacturing and a 0.2% increase in mining and quarrying were offset by declines in electricity, gas, steam and air conditioning supply and water, sewerage and waste management. Construction output increased 0.3%, supported by gains in both new work and repair and maintenance. On the expenditure side, growth was mainly driven by a 1.2% increase in gross fixed capital formation and a 0.3% rise in household consumption, while government consumption fell 0.3%. On an annual basis, UK GDP expanded 1.2%, picking up from 0.9% growth in Q1 and exceeding the expected 1.1% rise.