Key facts
- UK economy grew 0.5% in the April-June period of 2026.
- The initial estimate for Q2 GDP growth was 0.4%.
- Services sector grew 0.5% in the three months to June 2026.
- Construction output increased 0.3% in the three months to June 2026.
- UK CPI inflation rose to 2.9% in the 12 months to July 2026.
- London house prices fell 2.6% in the year to June 2026.
Britain's economy grew 0.5% in the April-to-June period of 2026, the Office for National Statistics (ONS) said on Wednesday, revising up its initial estimate of 0.4%. A Reuters poll of economists had expected the gross domestic product reading to remain unrevised.
The services sector, crucial for London's economy, grew by 0.5% in the three months to June 2026. Construction output increased by 0.3%, while production output showed no growth. Compared to the same period a year earlier, GDP was 1.1% higher in the three months to June 2026.
Separately, ONS data showed that UK Consumer Price Index (CPI) inflation rose to 2.9% in the 12 months to July 2026, up from 2.6% in June. CPIH inflation, a broader measure, also increased to 3.1% year-on-year in July. Core CPI remained unchanged at 2.6%, while services inflation slowed to 3.4% in July from 3.6% in June.
In the housing market, average monthly private rents in London reached £2,317 in July 2026, while average London house prices fell by 2.6% in the year to June 2026, marking the tenth consecutive month of annual decline. Across the UK, average house prices increased by 2.0% over the same period.