UK economy shows surprising resilience – but that might not last | Richard Partington

Weaker growth, rising energy costs and persistent inflation mean Britain could face tougher times in the autumn

• UK economic growth slows down

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In the spring the International Monetary Fund warned Britain faced the heaviest economic blow from the Iran war among the world's most advanced nations. Almost six months into the conflict, on the surface, the UK appears to be proving the forecasters wrong.

The latest official figures show the UK maintained its pole position as the fastest growing economy in the G7 in the first half of 2026. Despite the gloomy international backdrop and yet more domestic political uncertainty, consumers have largely continued spending and business investment has boomed.