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Economic indicators: Key statistics for the UK economy

Summary

Since taking office on 20 July, the new Prime Minister Andy Burnham has repeatedly said that his government will help with the cost of living. When addressing his cabinet at their first meeting, Mr Burnham said that “we need to be a cost of living government and getting that cost of living down.”

Gross domestic product (GDP) and productivity

GDP is estimated to have grown by 0.6% in January to March 2026 compared to the previous three-month period (October-December 2025). Eurozone GDP was flat (0.0%) in January to March 2026.

Services output was up by 1.5% in March to May 2026 compared to the previous year.

Manufacturing output increased by 1.5% over the same period.

Productivity across the whole UK economy increased by 0.9% in Q1 2026 compared with the previous quarter. Compared with the previous year, it was up by 0.4%.

Inflation and interest rates

CPI inflation was 2.6% in June 2026, down from 2.8% in May. Inflation in the Eurozone was 2.8% in June 2026, down from 3.2% in May.

The Bank of England’s Monetary Policy Committee (MPC) left interest rates unchanged at 3.75% on 30 July. Rates have been cut by 1.5 percentage points overall since August 2024.

Earnings and employment

Average wages excluding bonuses were 3.4% higher in the three months to May 2026 compared with the year before, and 0.3% higher after adjusting for inflation. CPI inflation for this period was 3.0%.

Data from the Labour Force Survey shows that 34.48 million people were in employment in March to May 2026, up 340,000 from a year before (but note that other data shows a fall in payrolled employees of 103,000 over the same period). The employment rate was 75.1%, down from 75.2% the previous year.

1.76 million people were unemployed in March to May 2026, up 81,000 from the year before. The unemployment rate was 4.9%. The UK harmonised unemployment rate for Q1 2026 was 5.0%, above the rate of Germany (3.9%) and the US (4.3%) but below that of France (8.2%).

Public finances

Government borrowing in the second quarter of 2026/27 financial year was £57.6 billion, which is £4 billion more than the amount borrowed during the same period in 2025/26.

At the end of June 2026, public sector net debt was equivalent to 95.9% of GDP, compared to 94.5% a year before.

Trade and exchange rates

The UK had a trade deficit of £18.6 billion in the three months to May 2026, compared to a deficit of £5.1 billion in the three months to February 2026.

The current account deficit was £22.1 billion in Q1 2026 (2.8% of GDP), down from £27.2 billion in Q4 2025 (3.5% of GDP).

The value of sterling fell by 0.3% between May and June 2026, having increased by 0.3% between April and May. Compared with a year ago, it is 1.4% lower.

Retail sales and consumer confidence

The volume of retail sales rose by 0.6% in the three months to June 2026 compared with the previous three months, and increased by 2.8% compared with the previous year.

GfK’s Consumer Confidence Index, which measures consumer attitudes, was at -17 in July 2026, up six points from June.

House prices

House prices increased by 2.7% over the year to May 2026.

Household debt

Household debt stood at 117.2% of disposable income in Q1 2026. This ratio has generally been decreasing since 2022.

Economic indicators are quick-read summaries of the latest data focusing on different aspects of the UK economy. The full suite of indicators can be found on the main Economic Indicators page.