CoStar Data Shows U.K. Economy Outperformed Growth Expectations in Q1 2026

Key Terms

pmi financial

PMI stands for Purchasing Managers’ Index, a monthly survey-based measure of activity in a specific sector (usually manufacturing or services) that summarizes whether business conditions are expanding or contracting. Think of it as a quick temperature check of company activity—readings above 50 mean expansion, below 50 mean contraction—which investors use to gauge economic health, anticipate earnings trends, and adjust risk exposure before full government data arrive.

LONDON--(BUSINESS WIRE)-- Led by broad increases across the services sector, the U.K. economy expanded in March, according to data from CoStar, a global leading provider of online real estate marketplaces, information and analytics in the property markets.

U.K. Economy Outperformed Growth Expectations in Q1 2026

Quarterly growth reached 0.6%, up from 0.1% in the final three months of 2025, with March expanding by 0.3%.

Construction also returned to growth, rising 0.4%, largely driven by repair and maintenance activity rather than new projects. Meanwhile, production output, including manufacturing, edged up 0.2%.

“The latest U.K. PMI data points to a stronger-than-expected economic backdrop,” said Patrick Scanlon, senior director of market analytics at CoStar Europe. “With manufacturing output rising to a near four-year high (53.6 in April) and services activity continuing to expand at a steady pace (52.7).”

On a monthly basis, the most significant drag on gross domestic product came from a 6.4% decline in travel agency and tour operator activity.

The full analysis can be found here.

For more information about the company and its products and services, please visit www.costargroup.com.

About CoStar Group

CoStar Group (NASDAQ: CSGP) is a global leader in commercial real estate information, analytics, online marketplaces, and 3D digital twin technology. Founded in 1986, CoStar Group is dedicated to digitizing the world’s real estate, empowering all people to discover properties, insights, and connections that improve their businesses and lives.

CoStar Group’s major brands include CoStar, a leading global provider of commercial real estate data, analytics, and news; LoopNet, the most trafficked commercial real estate marketplace; Apartments.com, the leading platform for apartment rentals; Homes.com, the fastest-growing residential real estate marketplace; and Domain, one of Australia’s leading property marketplaces. CoStar Group’s industry-leading brands also include Matterport, a leading spatial data company whose platform turns buildings into data to make every space more valuable and accessible; STR, a global leader in hospitality data and benchmarking; Ten-X, an online platform for commercial real estate auctions and negotiated bids; and OnTheMarket, a leading residential property portal in the United Kingdom.

CoStar Group’s websites attracted over 131 million average monthly unique visitors in the first quarter of 2026, serving clients around the world. Headquartered in Arlington, Virginia, CoStar Group is committed to transforming the real estate industry through innovative technology and comprehensive market intelligence. From time to time, we plan to utilize our corporate website as a channel of distribution for material company information. For more information, visit CoStarGroup.com.

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Karolina Capova
Senior Media Relations Specialist
kcapova@costar.com

Source: CoStar Group