UK economy grows 0.3% in March, Q1 growth 0.6%
The UK economy grew by 0.3% in March 2026, something many economists didn't expect, especially with the Middle East tensions causing chaos in global energy markets.
This follows a slight bump in February and no change in January, bringing overall growth for the first quarter to 0.6%.
That's a noticeable jump from late last year and brings year-on-year growth to 1%.
Services drive growth, inflation at 3.3%
Growth was led by broad-based increases across the services sector, with computer programming and advertising performing particularly well and construction returning to growth.
But not everything's rosy: people spent less on sports and recreation, hinting at some caution.
Meanwhile, inflation climbed to 3.3% thanks to spiking fuel prices tied to Middle East tensions.
Economists think things might cool off next quarter, but for now, the UK economy is hanging tough despite all the uncertainty.