UK GDP Growth Reached 0.6 Percent in Q1 2026 on Services Strength

UK GDP Growth Reached 0.6% in Q1 2026 on Services Strength

The United Kingdom economy reportedly expanded by 0.6% during the first quarter of 2026 compared to the previous quarter, matching market expectations and marking the strongest quarterly growth since the first quarter of 2025, according to data released by the Office for National Statistics. The latest reading followed an upwardly revised 0.2% increase recorded in the final quarter of 2025. Analysts noted that the stronger performance had mainly been supported by the services sector, which remained the primary contributor to overall economic activity during the period.

Within the sector, wholesale and retail trade reportedly delivered the strongest gains, expanding by 2.0%. Wholesale trade alone increased by 3.1%, while retail trade advanced by 1.6%, indicating resilient consumer and business demand despite broader economic uncertainties. Production output also posted modest growth of 0.2%, supported by a 0.8% rise in manufacturing activity and a 0.6% increase in electricity, gas, steam, and air conditioning supply. However, declines in mining, quarrying, and water supply sectors partially offset these gains.

Construction activity reportedly increased by 0.4% during the quarter. Repair and maintenance work emerged as a major driver, surging by 3.4%, although new construction work declined by 1.9%. On the expenditure side, economic expansion was said to have been supported by stronger gross capital formation, higher household consumption, and increased government spending. Economists suggested that the combined rise in investment and consumer activity may have reflected improving business confidence during the opening months of the year.

On an annual basis, the UK economy reportedly expanded by 1.1% in the first quarter of 2026, surpassing market forecasts of 0.8%. Separate projections from Trading Economics indicated that the country’s quarterly GDP growth rate could moderate to around 0.2% by the end of the current quarter, while long-term estimates projected growth trends near 0.4% in 2027 and 0.3% in 2028.