UK economy grows 0.6% in Q1, as expected

(Sharecast News) - The UK economy grew 0.6% in the three months to March, in line with expectations and following revised growth of 0.1% in the final quarter of 2025, according to figures released on Tuesday by the Office for National Statistics. Growth was driven by an increase in all three sectors, the ONS said, with the largest contribution from the services sector, which grew 0.8%.

Liz McKeown, director of economic statistics at the ONS, said: "Services were the main driver of growth in the latest quarter, with strengths in computer programming, wholesale and advertising only offset by falls in rental companies and recruitment agencies. Production and construction also both grew overall, although construction only partly reversed its recent weakness."

Annual GDP for 2025 was revised to show growth of 1.3%, down from 1.4% and following unrevised growth of 1% in 2024.

The figures also showed that living standards fell, with real household disposable income per head down 0.8% in the first quarter of this year following a 1.2% rise in the final quarter of 2025.