UK real gross domestic product (GDP) grew by 0.4 per cent in July 2026, following growth of 0.3 per cent in June and no growth in May, according to Office for National Statistics (ONS) data. For apparel, home-textile and retail sourcing teams tracking UK demand, the data point to continued economic expansion, although retail trade excluding motor vehicles and motorcycles weakened in July.
Real GDP also grew by 0.4 per cent in the three months to July 2026 compared with the three months to April, marking the eighth consecutive three-month-on-three-month increase. This followed growth of 0.4 per cent in the three months to June and 0.6 per cent in the three months to May.
UK real GDP grew 0.4 per cent in July 2026, extending expansion for an eighth consecutive three-month period.
However, retail trade excluding motor vehicles fell 0.5 per cent, signalling softer consumer activity.
Services grew 0.6 per cent over three months, while production and construction each contracted 0.5 per cent, highlighting a mixed economic backdrop for apparel and retail demand.
Services output increased by 0.6 per cent over the three months to July, while production and construction output each fell by 0.5 per cent. On a monthly basis, GDP growth in July reflected increases of 0.4 per cent in services, 0.2 per cent in production and 0.1 per cent in construction.
GDP was 1.3 per cent higher in the three months to July 2026 than in the same period a year earlier, with services output up 1.7 per cent and production up 0.5 per cent. Construction output declined by 2.3 per cent over the same period. Compared with July 2025, GDP was estimated to be 1.6 per cent higher.
Retail trade weakens
Wholesale and retail trade and repair of motor vehicles and motorcycles were among the main negative contributors to monthly GDP growth.
Retail trade excluding motor vehicles and motorcycles made the largest negative industry-level contribution, falling by 0.5 per cent in July after growth of 1.0 per cent in June and 1.2 per cent in May. Wholesale and retail trade and repair of motor vehicles and motorcycles fell by 1.7 per cent, making it the second-largest negative contributor.
Accommodation provided the largest positive contribution, with output increasing by 2.6 per cent.
Services output grew by 0.4 per cent in July, following growth of 0.4 per cent in June and 0.1 per cent in May.
For consumer-facing services, output grew by 0.5 per cent in the three months to July compared with the three months to April. Retail trade excluding motor vehicles and motorcycles increased by 1.4 per cent, while accommodation and sports activities, amusement and recreation services each grew by 3.2 per cent. Other personal service activities increased by 2.0 per cent.
These gains were partly offset by declines in food and beverage service activities, down 1.4 per cent; travel agency, tour operator and other reservation services, down 3.4 per cent; and buying, selling, renting and operating of own or leased real estate excluding imputed rent, down 0.4 per cent.
Production remains mixed
Production output contracted by 0.5 per cent in the three months to July compared with the three months to April, following no growth in the three months to June and growth of 0.2 per cent in the three months to May.
The decline was driven by falls in water supply, sewerage, waste management and remediation activities, down 4.0 per cent; electricity, gas, steam and air-conditioning supply, down 1.5 per cent; and mining and quarrying, down 2.6 per cent.
Manufacturing provided some offset, growing by 0.5 per cent over the three-month period.
On a monthly basis, production output increased by 0.2 per cent in July, following declines of 0.2 per cent in June and 0.7 per cent in May. The July increase was driven by manufacturing growth of 0.9 per cent.
Fibre2Fashion News Desk (CG)
