Capital Economics: The UK's Strong Economic Momentum in Early 2026 May Have Ended

She stated that, encouragingly, some of the industries most affected by the surge in energy prices performed well in February. Energy-intensive sectors such as mining and quarrying, transportation and warehousing, wholesale and retail, as well as arts and entertainment all recorded strong growth. Gregory said that the better-than-expected February output may mean that first-quarter GDP could increase by about 0.6% quarter-on-quarter, rather than the previously estimated 0.3%. However, she noted that the surge in energy prices means the economy is unlikely to see much further growth after that.