14 May 2026
The UK economy grew by 0.6% in the first quarter of 2026, according to the latest data from the Office for National Statistics (ONS).
The UK's economic growth slowed following the outbreak of the Iran war on 28 February. However, it still grew by 0.3% in March whereas economists had expected it to shrink by up to 0.2%.
In the first three months of the year, economic growth was driven by a 0.8% boost in the services industry, while production output grew by 0.2% and construction output grew by 0.4%, said the ONS.
Stuart Morrison, Research Manager at the British Chambers of Commerce, said the data showed that business is resilient in the face of economic shocks.
He added: 'But firms are concerned the full impact of the Iran conflict will start to show in the coming months. Firms are facing huge cost pressures. Business confidence remains low and firms are struggling to invest.
'Recent domestic political uncertainty only adds to business concerns. But the firms we represent are not focused on personalities; they are interested in policies. The King's Speech provided some positive signals for business, with a pledge to tackle late payments, simplify trade and strengthen apprenticeships.
'But the government must go further. To grow our economy in challenging times, ministers must deliver in partnership with business. That can only come through supporting investment, boosting productivity, and getting more firms exporting.'