UK GDP Report Mar Q1

The UK economy grew by a solid 0.6% in Q1 2026, driven by services, but this momentum is expected to fade significantly in Q2 due to the Iran conflict and higher energy costs.

Key Takeaways

• 1.UK GDP rose by 0.3% in March and 0.6% for Q1 2026, exceeding market expectations.
• 2.The services sector remains the primary engine of growth, expanding by 0.8% in Q1.
• 3.Growth figures likely overstate current momentum as they predated the escalation of the Iran conflict and subsequent energy price pressures.

Table of Contents

• Firm end to Q1, but strength largely reflects pre-war conditions
• Services remain the main driver of growth
• Near term holding up, but surveys point to softer momentum ahead
• Balance between near-term resilience and growing uncertainty
• Policy implications

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