STORY
The UK economy grew by 0.6% in the first quarter of 2026, the Office for National Statistics has confirmed, leaving its earlier estimate unchanged. Services were the main driver of growth, with computer programming, wholesale and advertising helping to offset weakness in rental and recruitment activity.
The figures also showed pressure on household finances, with real household disposable income per head falling by 0.8% in the first quarter. The savings ratio also declined, suggesting that households were putting less money aside even before the economic effects of the US-Iran conflict began to feed through.
The data gives the incoming Labour leadership a mixed inheritance. Growth at the start of the year was stronger than expected, but economists warned that tighter financial conditions, weaker household spending and uncertainty would continue to constrain the Government’s room for manoeuvre.