World Cup and June’s heatwave help UK economy withstand Iran war pressures

Britain’s economic growth slowed in the second quarter but a boost from heatwaves and the World Cup helped offset impacts from the Iran war in a better-than-expected performance in June, official figures have shown.

The Office for National Statistics (ONS) said gross domestic product (GDP) rose by 0.4% between April and June, down from 0.6% growth in the first three months of the year.

Its data showed growth of 0.3% month-on-month in June, against expectations for a flat performance, as 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.

The June rise in GDP followed flat growth in May, revised down from 0.1% growth previously estimated, and a 0.1% contraction in April.

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.

In response to the latest economic growth data, Chancellor of the Exchequer John Healey said: “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.

“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.”

Published: 13/08/2026 by Radio NewsHub