The UK economy has recorded the strongest quarterly growth in a year over the first three months of 2026 with a surprise spurt in activity after the Iran war began.

Gross domestic product (GDP) increased by 0.6 per cent between January and March, the Office for National Statistics (ONS) said this morning.

This was higher than the 0.5 per cent growth that most economists had been expecting, and marks the highest since the first quarter of 2025.

The ONS also said GDP increased by 0.3 per cent in March, surprising economists who were expecting growth to slow following the onset of war in the Middle East.

ONS director of economic statistics Liz McKeown said: 'Growth picked up in the first quarter of the year, led by broad-based increases across the services sector.

'Within that wholesale, computer programming and advertising performed particularly well.

'Production also grew slightly, while construction returned to growth, though only partly reversing weakness at the end of last year.'

Chancellor Rachel Reeves said: 'Today's figures show the Government has the right economic plan. The choices I have made as Chancellor mean our economy is in a stronger position as we deal with the costs of the war in Iran.

'Now is not the time to put our economic stability at risk. To do so would leave families and business worse off. Instead, this Government is getting on with the job of building an economy that is stronger, more resilient, and prepared for the future.'