UK economy has a rare strong start to the second half – but tougher challenges loom 15 October 2026 For each of the past four years, GDP growth has been stronger in the first half of the year than the second. But with the economy growing by 0.1 per cent in August on the back of broad-based strength in manufacturing, following surprising growth of 0.4 per cent in July, the UK has a fighting chance of avoiding this unwelcome pattern and building on the punchy 1.2 per cent growth in the first half of the year, the Resolution Foundation said today (Thursday) in response to the latest ONS data. Simon Pittaway, Principal Economist at the Resolution Foundation, said: “The UK economy has been remarkably resilient in the first half of the year, especially given the disruption caused by conflict in the Middle East. Maintaining strong growth throughout the year is going to be tough, but momentum appears to have lasted the summer.” “Positive news is likely to be outweighed by a weaker economic outlook when the Chancellor presents his Budget later this month, where he’ll face a tough task of trying to providing fresh cost of living support while also reducing borrowing.”
