The UK economic system confirmed sturdy development within the first three months of the 12 months, in line with official figures.
Gross home product (GDP) – the usual measure of an economic system’s worth – grew 0.7% within the first quarter of 2025, the Workplace for Nationwide Statistics mentioned.
Cash weblog: Response as UK economic system grows greater than anticipated
It is considerably higher than the three months earlier, through which a slight financial growth of simply 0.1% was reported for the ultimate quarter of 2024.
The ONS additionally mentioned there was a small quantity of development final month, as GDP expanded 0.2% in March, which equally beat expectations.
No development in any respect had been forecast for the month.
How did the economic system develop?
A big contribution to excessive GDP development was a rise in output within the manufacturing sector, which rose 1.1%, pushed by manufacturing and a 4% enhance in water provide, the ONS mentioned.
Additionally working to push up the GDP determine was 0.7% development within the greatest a part of the UK economic system – the companies business.
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‘This is the priority with GDP figures’
Wholesale, retail and laptop programming companies all carried out nicely within the quarter, as did automobile leasing and promoting, the ONS mentioned.
It reveals the economic system was resilient, because the nation headed into the worldwide commerce struggle sparked by President Trump’s so-called ‘liberation day’ tariff announcement on 2 April.
Chancellor Rachel Reeves is taking the figures as a political win, saying the UK economic system has grown sooner than the US, Canada, France, Italy and Germany.
“Today’s growth figures show the strength and potential of the UK economy, ” she mentioned.
“Up against a backdrop of global uncertainty, we are making the right choices now in the national interest.”
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Such GDP numbers might not proceed into April as companies and shoppers had been hit with a raft of invoice rises, and Mr Trump’s tariffs fired the beginning gun on a world commerce struggle.
Final month, water, vitality and council tax payments rose throughout the nation whereas employers confronted increased wage prices from the rise of their nationwide insurance coverage contributions and the minimal wage.
However above-inflation wage development and fading shopper warning might proceed to spice up the economic system.
