UK Economy Shows Resilience Amid Slowing Growth and Rising Costs

The UK economy grew by 0.4% in the second quarter of 2026, down from 0.6% in the first quarter, according to the Office for National Statistics. The growth was supported by hot weather and the men's football World Cup boosting consumer spending and business investment, but analysts warn that the impact of the Iran war on energy prices and persistent inflation could lead to tougher times ahead. The UK remains the fastest-growing economy in the G7 for the first half of 2026, but experts caution that growth is likely to fade in the coming months.