LONDON — The UK economy has recorded the fastest quarterly growth among G7 nations, with official data confirming that gross domestic product (GDP) expanded by 0.6% during the first quarter of 2026.

According to the latest figures from the Office for National Statistics, growth was driven primarily by the services sector, including computer programming, advertising and wholesale industries. The performance reinforces signs that business activity remained resilient during the opening months of the year.

Despite the encouraging headline growth, household finances continue to face challenges. Official statistics show that real household disposable income per person fell during the same period, reflecting the continued impact of higher living costs and tighter financial conditions.

Economists say the figures present a mixed picture. Strong business activity and investment provide positive signals for the wider economy, but consumer spending and household confidence will remain key indicators to watch over the coming months.

Financial markets and policymakers are now closely monitoring inflation, employment and consumer demand to determine whether the UK's economic momentum can be sustained through the remainder of 2026 amid continuing global uncertainty.