UK economy records strongest quarterly growth in a year

Derren Nathan, head of equity research at Hargreaves Lansdown, said: “The initial ONS estimate for first quarter UK GDP has come in better than expected rising 0.6 per cent (consensus 0.5 per cent) compared to the upwardly revised fourth quarter of 2025.

“That’s the strongest print out of the G7 nations so far with only Japan left to report (consensus 0.4 per cent).

“The growth was broad based with services leading the way at 0.8 per cent followed by construction at 0.4 per cent and production at 0.2 per cent.

“But there were some pockets of weakness with administrative and support services falling one per cent partly reflecting a weaker outturn from employment agencies as the jobs market slowed.

“Stronger than expected economic growth is usually a win for Downing Street in terms of tax revenues.

“But the period captures just one month of the Iran conflict and higher oil prices and growth’s expected to slow this quarter. In isolation this data would likely favour the hawks and exert some pressure onto short term gilt prices.”