UK Q1 preliminary GDP +0.6% vs +0.6% q/q expected
The UK economy grew by 0.6% in Q1, beating expectations and driven by strong services output.Summary
The UK economy delivered a solid performance in the first quarter of 2026, growing by 0.6% quarter-on-quarter, which matches market expectations. This growth was largely driven by a robust performance in March, despite the challenges posed by rising energy prices. Services output was the primary engine of this expansion, increasing by 0.8% in Q1 2026, a significant improvement from the 0.2% growth seen in the previous quarter. On an annual basis, services output was 1.4% higher than the same period last year. The sector was supported by both consumer-facing services, which grew by 0.8%, and non-consumer-facing services, which increased by 0.7%. Additionally, household consumption saw a notable uptick, rising by 0.35% in the first quarter, marking a substantial recovery from the sluggish 0.07% growth recorded in the final quarter of 2025. While the economy demonstrated resilience and solid performance in Q1, the report suggests that the real challenge lies ahead as the UK must now navigate the potential economic fallout from the US-Iran conflict.
(Source：Forexlive)