The UK financial system confirmed robust development within the first three months of the yr, 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 mentioned.
The rise is best 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, by which a slight financial growth of just 0.1% was reported for the ultimate quarter of 2024.
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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 financial 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 financial system – the providers trade.
‘Here is the priority with GDP figures’
Wholesale, retail and pc programming providers all carried out nicely within the quarter, as did automobile leasing and promoting, the ONS mentioned.
It reveals the financial system was resilient, because the nation headed into the worldwide commerce battle sparked by President Trump’s so-called ‘liberation day’ tariff announcement on 2 April.
GDP per capita, which supplies a greater sense of how nicely off or not individuals are feeling, has tended to be decrease than the headline GDP determine in recent times.
However for the primary three months of this yr, GDP per capita rose 0.5%.
Not for a yr (the primary quarter of 2024) has there been such giant GDP development per head.
Chancellor: ‘We’re a powerful financial system’
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 sooner than the US, Canada, France, Italy and Germany.
“Right now’s development figures present the energy and potential of the UK financial system, ” she mentioned.
“Up towards a backdrop of worldwide uncertainty, we’re making the precise decisions now within the nationwide curiosity.”
Such GDP numbers could not proceed into April as companies and customers had been hit with a raft of invoice rises, and Mr Trump’s tariffs fired the beginning gun on a world commerce battle.
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 development and fading client warning might proceed to spice up the financial system.
