UK Confirms 0.6% Q1 Growth as 2025 GDP Is Cut to 1.3%
Updated
Updated · The Independent · Jun 30
UK Confirms 0.6% Q1 Growth as 2025 GDP Is Cut to 1.3%
3 articles · Updated · The Independent · Jun 30
Summary
ONS left UK first-quarter 2026 growth unrevised at 0.6%, confirming a strong start to the year before the Iran war hit activity.
April GDP then shrank 0.1% after 0.3% growth in March, as nearly four months of conflict and higher fuel and energy costs weighed on the economy.
2025 growth was revised down to 1.3% from 1.4%, with fourth-quarter expansion cut to 0.1% from 0.2%, reinforcing why the Bank of England and other forecasters have lowered 2026 outlooks.
Household finances weakened even as GDP per head rose 0.6% in Q1: real disposable income fell 0.8% and the saving ratio dropped 0.7 points to 8.9% as taxes and inflation eroded spending power.
Services drove the quarter's expansion with 0.8% growth, while construction and production each rose 0.2%, but the interim US-Iran peace deal is not expected to fully offset the year's damage.