UK Q1 preliminary GDP +0.6% vs +0.6% q/q expected

• Prior +0.1%
• GDP +1.1% vs +0.8% y/y expected
• Prior +1.0%

That’s a solid showing by the UK economy in the first quarter of the year, helped by a strong performance in March despite the challenges from rising energy prices. Services output was the biggest contributor, increasing by 0.8% in Q1 2026. That compares with the 0.2% growth in the same sector in Q4 2025. And even compared to the same quarter a year ago, services output was higher by 1.4%.

Of note, non-consumer-facing services (business-facing services) grew by 0.7%, while consumer-facing services grew by 0.8%.

Besides that, household consumption also showed a notable increase in the first quarter (+0.35%) which is a marked improvement from the final quarter of last year (+0.07%).

All in all, the report suggests that it was all fun and games for the UK economy in Q1. That as economic conditions enjoyed a period of resilience and solid performance. However, now is when the real challenge begins in having to deal with the fallout from the US-Iran conflict.

This article was written by Justin Low at investinglive.com.