UK Economy Grows 0.6% in First Quarter of 2026
The UK economy expanded by 0.6% during the first quarter of 2026, according to data released by the Office for National Statistics on Tuesday.
The result matched both the preliminary estimate published last month and economists’ forecasts.
Growth accelerated from the final quarter of 2025, when the economy recorded a revised increase of just 0.1%.
Services Sector Leads UK GDP Growth
All three major sectors of the economy contributed to the expansion between January and March.
The services sector provided the strongest support, growing by 0.8% during the quarter.
As services represent the largest part of the British economy, the sector’s performance played a major role in the overall improvement in UK GDP.
GDP Per Person Also Increases
Real gross domestic product per person rose by 0.6% in the first quarter of 2026.
Compared with the same period in 2025, GDP per person increased by 0.7%.
The improvement suggests that economic growth slightly outpaced changes in the UK population during the period.
UK Annual Growth Revised Lower
The Office for National Statistics revised the UK’s annual economic growth rate for 2025 slightly lower.
The economy is now estimated to have grown by 1.3% last year, compared with the previous estimate of 1.4%.
Meanwhile, Britain’s GDP growth rate for 2024 remained unchanged at 1.0%.
Household Disposable Income Declines
Despite stronger economic growth, household finances weakened during the first quarter.
Real household disposable income per person fell by 0.8% between January and March. This followed a 1.2% increase during the previous quarter.
The decline indicates that many households had less income available after accounting for taxes, inflation and other essential costs.
UK Household Saving Ratio Falls
The household saving ratio also declined during the quarter.
It fell by 0.7 percentage points to 8.9%, mainly because of lower non-pension saving contributions.
This means households saved a smaller proportion of their available income compared with the final quarter of 2025.
ONS Updates Previous GDP Estimates
The statistics office also made several minor revisions to quarterly growth figures covering the period from the first quarter of 2024 to the first quarter of 2026.
The adjustments were limited to 0.1 percentage points in either direction.
According to the ONS, the revisions reflected updated economic data and changes to seasonal adjustment calculations.
