Britain's economy grew 0.3% month-on-month in June 2026, beating expectations for no growth and rebounding from zero growth in May. Official data also showed gross domestic product increased 0.4% over the second quarter, in line with a Reuters poll. June's monthly expansion was driven mainly by a 0.4% rise in services output, with professional, scientific and technical activities, including scientific research and development and legal activities, providing the biggest boost and offsetting declines in production and construction. On an annual basis, GDP rose 1.1%, easing from a revised 1.2% in May but remaining above the market forecast of 0.8%. The second quarter unfolded amid uncertainty over Keir Starmer's hold on power before he resigned as prime minister in July. Prime Minister Andy Burnham has said his government will seek to lower costs for businesses and address household living costs despite what he described as a difficult financial outlook. Growth is expected to slow later in the year as the Iran war pushes up energy prices, although a recent business survey indicated some momentum among services firms in July.