2026.05.1406:13:04UTC+00UK Economy Grows 0.6% in Q1 2026

The UK economy grew by 0.6% in Q1 2026, in line with market expectations and representing the strongest quarterly expansion since Q1 2025. This followed an upwardly revised 0.2% increase in the previous quarter. Growth was driven primarily by the services sector, which expanded by 0.8%, up from 0.2% in the prior period. Within services, the wholesale and retail trade sector led the gains with a 2.0% increase, including a 3.1% rise in wholesale trade and a 1.6% rise in retail trade.

Production output edged up 0.2%, supported by a 0.8% increase in manufacturing and a 0.6% rise in electricity, gas, steam, and air conditioning supply, which together offset declines in mining and quarrying as well as water supply. The construction sector expanded by 0.4%, as repair and maintenance activity jumped 3.4%, more than compensating for a 1.9% drop in new work.

On the expenditure side, growth was underpinned by stronger gross capital formation, household consumption, and government spending. On an annual basis, the economy grew by 1.1% in Q1 2026, beating the 0.8% forecast.