The UK financial system confirmed sturdy progress within the first three months of the 12 months, in keeping with official figures.
Gross home product (GDP) – the usual measure of an financial system’s worth – grew 0.7% within the first quarter of 2025, the Workplace for Nationwide Statistics stated.
The rise is healthier than anticipated. A rise of simply 0.6% was anticipated by economists polled by the Reuters information company.
Money blog: Reaction as UK economy grows more than expected
It is considerably higher than the three months earlier, during which a slight financial enlargement of just 0.1% was reported for the ultimate quarter of 2024.
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The ONS additionally stated there was a small quantity of progress final month, as GDP expanded 0.2% in March, which equally beat expectations.
No progress in any respect had been forecast for the month.
How did the financial system develop?
A big contribution to excessive GDP progress was a rise in output within the manufacturing sector, which rose 1.1%, pushed by manufacturing and a 4% improve in water provide, the ONS stated.
Additionally working to push up the GDP determine was 0.7% progress within the greatest a part of the UK financial system – the companies business.
‘Here is the priority with GDP figures’
Wholesale, retail and laptop programming companies all carried out properly within the quarter, as did automotive leasing and promoting, the ONS stated.
It reveals the financial system was resilient, because the nation headed into the worldwide commerce conflict sparked by President Trump’s so-called ‘liberation day’ tariff announcement on 2 April.
GDP per capita, which provides a greater sense of how properly off or not persons are feeling, has tended to be decrease than the headline GDP determine in recent times.
However for the primary three months of this 12 months, GDP per capita rose 0.5%.
Not for a 12 months (the primary quarter of 2024) has there been such giant GDP progress per head.
Welcome political information, for now
The info is welcome information for a authorities who’ve recognized rising the financial system as its primary precedence.
Chancellor Rachel Reeves is taking the figures as a political win, saying the UK financial system has grown quicker than the US, Canada, France, Italy and Germany.
“As we speak’s progress figures present the power and potential of the UK financial system, ” she stated.
“Up towards a backdrop of world uncertainty, we’re making the fitting decisions now within the nationwide curiosity.”
Such GDP numbers might not proceed into April as companies and shoppers have been hit with a raft of invoice rises, and Mr Trump’s tariffs fired the beginning gun on a world commerce conflict.
Final month, water, power and council tax payments rose throughout the nation whereas employers confronted larger wage prices from the rise of their nationwide insurance coverage contributions and the minimal wage.
However above-inflation wage progress and fading client warning may proceed to spice up the financial system.
