UK

UK GDP gains 0.4% as World Cup lifts Burnham's economy, implications for Canada and US markets

While Canada and the United States watch the World Cup, the United Kingdom reported a 0.4% rise in GDP, a boost that Burnham's government says reflects the tournament's impact.

UK GDP gains 0.4% as World Cup lifts Burnham's economy, implications for Canada and US markets

While Canada and the United States watch the World Cup, the United Kingdom reported a 0.4% rise in GDP, a boost that Andy Burnham's government says reflects the tournament's impact. The World Cup and heatwaves helped to fuel economic growth in Britain offsetting the blow from Donald Trump's Iran war, official figures reveal.

Gross domestic product (GDP) rose by 0.4% between April and June, according to the Office for National Statistics.

The rise was better than City forecasts, but down from 0.6% growth in the first three months of the year.

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

World Cup fuels UK services sector

Businesses across the service sector reported buoyant trade thanks to extreme hot weather and the start of the World Cup football tournament, the ONS data suggested.

"Some of the rises in arts/entertainment activity, information/communication and in accommodation/food services in June probably had a lot to do with temporary factors, such as the World Cup and the unseasonably warm weather," said Ruth Gregory, deputy chief UK economist at Capital Economics.

Aaron Bright, investment analyst at investing and trading platform IG, added: "The World Cup gave hospitality, retail and the pub trade a patriotic lift, though it ultimately ended in bitter disappointment for England and Scotland, and one‑off boosts of that kind are no foundation for consistent, durable growth.

"Underneath the headline the picture is less reassuring; production managed no growth across the quarter and the data was largely being propped up by services."

North American analysts observe that similar spikes in hospitality revenue are common during major tournaments, offering a short‑term boost to restaurants and pubs across Canada and the United States. The modest growth also underscores how intertwined the UK economy remains with its transatlantic partners, whose trade ties can amplify such seasonal effects.

Political reactions in London

Chancellor John Healey said the Government will 'double down and drive growth in every postcode'.

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."

Shadow Chancellor Sir Mel Stride stressed: "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."