The rate of UK growth has slowed but the economy remained resilient despite the Iran war, according to the latest data.
Gross domestic product (GDP), a measure of everything produced in the economy, grew 0.4% in the second quarter from April to June, said the Office for National Statistics (ONS).
It's a slight slowdown from the 0.6% recorded in the first three months of the year.
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The economy "remained relatively robust" after a "strong start" to 2026, the ONS's director of economics statistics Liz McKeown said.
Rather than the slowdown being a sign of consumers tightening their belts due to higher fuel costs from the war, it's been described as "a mechanical unwind" from front-loaded spending at the start of the year, said economist Rob Wood from Pantheon Macroeconomics.
Why?
It came thanks to expansion in the biggest part of the economy - services.
In particular, computer programming and advertising continued to perform strongly, Ms McKeown added.
Growth would have been higher but for "a notable area of weakness" in wholesale, she said.
There was no change in production overall: while pharmaceutical and computer manufacturing grew, there were falls in power generation and sewerage.
Construction also was on the up over the three months.
When looked at monthly, in June, growth was higher than expected, with GDP expanding 0.3% rather than the 0% forecast by economists polled by Reuters.
Sunny weather and sport were said by Ms McKeown to be behind this surprise June rise, the month when the World Cup began.
During the period in question, Rachel Reeves was still the chancellor.
In response to the latest GDP data, the current chancellor 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."
For the Conservatives, shadow chancellor Sir Mel Stride 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."
(c) Sky News 2026: Q2 GDP slows but economy resilient despite Iran war - ONS data
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