London, United Kingdom. Britain’s economy grew by 0.6 per cent in the first quarter of 2026, official data confirmed this week, while households were under pressure before the full effects of the US-Iran conflict began to feed through. The figure was unchanged from an initial estimate by the Office for National Statistics.
Services drive first-quarter growth
The ONS said services were the main driver of growth in the first three months of the year. Liz McKeown, director of economic statistics at the ONS, said strengths in computer programming, wholesale and advertising were offset only by falls in rental companies and recruitment agencies.
Seasonal adjustment concerns remain under review
The latest figure marked the third consecutive year of notably strong growth in the first quarter. Some economists have raised concerns about the statistics office’s seasonal adjustment processes, but the ONS said a review had found no statistically significant seasonality and that it was continuing to monitor the issue closely.
Outlook points to weaker conditions
Business surveys and economic growth data for April indicated that Britain’s likely next prime minister to replace Keir Starmer, Andy Burnham, could face a more difficult economic backdrop.
Matt Swannell, chief economic adviser to the EY ITEM Club, said softer household spending, tighter financial conditions and economic uncertainty were expected to weigh on investment. He added that, despite the prospect of new leadership, fiscal policy was likely to remain tight in the near term.
Previous growth figures revised lower
The ONS revised growth in the final three months of 2025 down to 0.1 per cent. Output for 2025 as a whole was also revised slightly lower to 1.3 per cent from a previous estimate of 1.4 per cent.
