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UK economy grew by 0.6% at the start of 2026, ONS confirms
Services led the quarter with 0.8% growth, while real household disposable income fell 0.8% and the saving ratio slipped to 8.9%, the ONS said.
On Tuesday, The ONS confirmed UK GDP grew by an unrevised 0.6% in the first quarter of 2026, establishing the economic baseline for the start of this year.
Services provided the main growth engine, expanding 0.8%, while production and construction each rose 0.2%, according to Liz McKeown, director of economic statistics at The ONS.
Real household disposable income fell 0.8% as the household saving ratio dropped to 8.9% in the first quarter, down from 9.6% in late 2025, driven by rising taxes and inflation.
Monthly data signalled a hit from the Middle East conflict, with the economy contracting 0.1% in April, down from 0.3% growth in March.
The Bank, the International Monetary Fund, and the Organisation for Economic Co-operation and Development downgraded GDP forecasts for this year, while The ONS revised 2025 growth down to 1.3% from 1.4%.