LONDON — The UK has recorded the fastest economic growth among G7 nations in the latest quarterly figures, but new data shows many households are still facing financial pressures despite the stronger headline performance.

The economy expanded by 0.6% in the first quarter, supported by growth in the services sector, higher business investment and stronger exports. However, real household disposable income per person declined, reflecting continued pressure from taxes and the cost of living.

Economists say the figures present a mixed picture. While business activity has shown resilience and investment remains positive, consumer finances continue to face challenges, limiting improvements in overall living standards.

Analysts believe the coming months will be crucial in determining whether stronger business activity translates into broader economic benefits for households.

Markets and policymakers will now closely monitor inflation, employment and consumer spending as indicators of the UK's economic momentum through the remainder of the year.