The U.K. economy grew 0.6% in the first quarter of 2026, according to figures from the Office for National Statistics.
This matches Reuters’ expectations for the period and follows revised growth of 0.2% in the fourth quarter.
Director of economic statistics Liz McKeown said wholesale, computer programming and advertising performed particularly well, and that production also grew slightly.
“Growth picked up in the first quarter of the year, led by board-based increases across the services sector,” she said.
The services sector grew 0.8%, while the production sector rose 0.2%, and the construction sector increased 0.4%.
Despite the positive increases in the January to March period, the Iran war is expected to weigh on macroeconomic data going forward.
The conflict in the Middle East has put massive strains on energy supply chains because of the effective closure of the Strait of Hormuz, where around 20% of the world’s oil and gas is transited through.
The Bank of England said the severity of the hit to the British economy will depend on how long the war lasts and is expected to hike interest rates later this year.
This comes as the International Monetary Fund predicted that the U.K. could experience the biggest economic growth hit of all the world’s richest countries if the Iran war continues.
The U.K. is also in the midst of a political crisis as Prime Minister Keir Starmer has faced calls to step down following the ruling Labour Party’s dismal performance in local elections a week ago.
While Starmer has vowed to remain in office for now, he remains vulnerable to leadership challenges with a cohort of over 90 Labour lawmakers wanting him to resign.
