2026.05.1406:07:18UTC+00UK GDP Posts Surprise Expansion in March

The UK economy grew by 0.3% month-on-month in March 2026, easing from a downwardly revised 0.4% expansion in February but outperforming expectations of a 0.2% contraction. Growth was driven primarily by the services sector, which rose 0.3%. Within services, information and communication led the gains, expanding by 1.1% and marking a fourth consecutive month of growth. In this subsector, information service activities surged by 6.0%, while computer programming, consultancy, and related activities increased by 1.1%.

Additional support came from accommodation and food services, which grew by 1.3%, and from human health and social work activities, up 0.4%. These advances were partially offset by a 0.2% decline in wholesale and retail trade, including motor vehicle repair. Elsewhere, construction output rose 1.5%, while production slipped 0.2%.

On an annual basis, GDP increased by 1.2%, the fastest pace since July of the previous year, accelerating from 1.0% in February and beating forecasts of 0.7%.