UK GDP Surprises But FTSE Sinks on Mining Shock and Iran Risks

The UK economy grew 0.4% in the second quarter, with a surprise 0.3% jump in June despite the ongoing Iran war. The first half of 2026 saw the UK expand by about 1%, making it the fastest-growing economy in the G7 and surpassing expectations from forecasters like KPMG and Berenberg who predicted sub-1% annual growth. Services led the charge with a 0.5% quarterly expansion, aided by a sizzling heatwave and World Cup spending, while production remained flat.

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