UK GDP (Q1 Final)

UK GDP grew by 0.6% in Q1 2026, meeting expectations. However, HSBC expects a slowdown in the second half of the year due to fiscal uncertainties.

Key Takeaways

• 1.UK GDP growth in Q1 2026 was unrevised at 0.6% q-o-q, supported by increases in consumption and business investment.
• 2.Despite the Q1 growth, the outlook for H2 2026 remains soft due to budget uncertainty and a squeezed real income environment.
• 3.Net exports acted as a drag on Q1 growth, contributing -0.4ppts as imports outpaced export growth.

Table of Contents

• UK GDP (Q1, final)
• Facts
• Implications
• In search of “good growth”
• The savings rate fell...
• ... but consumption remains weak versus its pre-Covid trend
• Business investment picked up in Q1
• Household spending and business investment had a decent Q1
• Disclosure appendix
• Disclaimer

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