UK economy grew by 0. 4% in second quarter as Iran war prompts slowdown
Economic growthin the UK slowed between April and June, as the fallout from Donald Trump'swar on Iranput strain on global finances. The UK economygrew by 0. 4 per centin the second quarter of the year,. . .
Economic growthin the UK slowed between April and June, as the fallout from Donald Trump'swar on Iranput strain on global finances. The UK economygrew by 0. 4 per centin the second quarter of the year, according to the Office for National Statistics, down from 0. 6 per cent in the first quarter. But the ONS said firms across the service sector reported buoyant trade thanks to extreme hot weather and the start of the World Cup football tournament. 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," she added. ONS data showed growth of 0. 3 per cent month-on-month in June, against expectations for a flat performance. The conflict in the Middle East has driven energy prices higher since February and pressed down on consumer sentiment. Chancellor John Healey acknowledged the impact of the war in Iran, as he pledged to "give breathing space" to those affected by the cost of living crisis. Chancellor John Healey acknowledged the impact of the war in Iran, as he pledged to "give breathing space" to those affected by the cost of living crisis (Getty/iStock)"I know 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," he said. "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. "Sir Mel Stride MP, Shadow Chancellor, 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. "Labour need to realise that it's their poor decisions which have stifled growth and made the cost of living worse. "A quarterly increase in GDP is overall good news for Andy Burnham, who has said he wants to achieve "growth in every postcode" of the UK as he began his tenure in Downing Street last month. He opened a new headquarters for the centre of government in Manchester in late July, named No 10 North, where he is expected to work once each week as part of his move to push power out of Westminster. More follows on this breaking news story. . .