The ONS reported that UK real gross domestic product (GDP) is estimated to have increased by +0.6% in Q1 2026, following revised growth of +0.2% in Q4 2025.
Following historic revisions to the data from January 2024 onwards, GDP is estimated to have grown by an unrevised +1.4% in 2025 as a whole, after revised growth of +1.0% in 2024 (previously +1.1%).
On an output basis, the services sector expanded by +0.8% in Q1 2026, while construction output rose by +0.4% and production output by +0.2%.
The increase in production output during the latest quarter was driven mainly by growth of +0.8% in manufacturing (covered in more detail in the “UK Manufacturing Output” article in this newsletter) and growth of +0.6% in “electricity, gas, steam & air conditioning supply”. These increases were partially offset by declines in “mining & quarrying”, which fell by -4.5%, and “water supply; sewerage, waste management & remediation activities”, which declined by -0.5% in Q1 2026.
Services output increased by +0.8% in Q1 2026, following growth of +0.2% in Q4 2025. Output in the services sector is estimated to be +1.4% higher than the same quarter a year earlier. Eleven of the fourteen services subsectors contributed positively to quarterly growth. The largest positive contribution came from the “wholesale & retail trade; repair of motor vehicles & motorcycles” subsector, which increased by +2.0%. The largest negative contribution in Q1 2026 came from “administrative & support service activities”, which fell by -1.0%, mainly reflecting declines in “rental & leasing activities” and “employment activities”.
Construction output is estimated to have increased by +0.4% in Q1 2026 but remains -1.3% lower than the same quarter a year earlier. “Repair & maintenance” grew by +3.4% over the quarter, while “new work” declined by -1.9%. Within “repair & maintenance”, the largest positive contribution came from “private housing repair & maintenance”, which rose by +4.1%. Within “new work”, the largest negative contribution came from “private new housing”, which fell by -2.6%. Further detail is available in the range of ONS Statistical Bulletins, which can be downloaded from the ONS website at https://www.ons.gov.uk/releasecalendar (14th May) or on request from MTA.