UK economy grows 0.6% in first quarter as expected

UK real gross domestic product increased by an unrevised 0.6% in the first quarter, according to data from the Office for National Statistics on Tuesday.

UK gross domestic product rose 0.6% in the three months to March, unchanged from the previous estimate, accelerating from growth of 0.1% in the fourth quarter of 2025, the latter revised down from 0.2%.

In output terms, the ONS said growth in the latest quarter was caused by an increase in all three sectors, with the largest contribution from the services sector, which grew by 0.8%.

On-year GDP growth was revised lower for the first quarter to 0.9% from 1.1%.

On an annual basis, GDP growth in 2025 was revised down to 1.3% from 1.4% previously, following unrevised growth of 1.0% in 2024.

Real GDP per head is estimated to have increased by 0.6% in the first quarter of 2026, and is up by 0.7% compared with a year ago.

Real household disposable income per head fell by 0.8% in the first quarter, following a 1.2% rise in the fourth quarter.

Trade data released alongside the GDP figures showed the UK current account deficit, including trade in precious metals, narrowed by £5.04 billion to £22.13 billion, or 2.8% of GDP, in the first quarter.

This was a larger deficit than the FXStreet-cited consensus, which expected a first quarter deficit of £21.5 billion.

The underlying UK current account deficit narrowed to by £3.15 billion to £15.07 billion in the first quarter.

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