UK economy grew faster than expected to 0.7% in first quarter of year ahead of Trump tariffs

The UK economy grew by 0.7 per cent successful the archetypal 3 months of the year, caller authoritative figures show.

Gross Domestic Product (GDP) grew faster than expected and astatine the fastest complaint successful a year, according to the Office for National Statistics, successful a boost to Chancellor Rachel Reeves.

The figures showed economical maturation successful the archetypal 4th of 2025 - earlier US Donald Trump’s “Liberation Day” successful aboriginal April.

The US president imposed sweeping tariffs connected countries astir the satellite - including the UK - which sent planetary markets tumbling and prompted economical instability.

Ms Reeves said the maturation figures showed the Government was “making the close choices” but acknowledged “there is much to do”.

“Today’s maturation figures amusement the spot and imaginable of the UK economy,” she said.

“In the archetypal 3 months of the year, the UK system has grown faster than the US, Canada, France, Italy and Germany. Up against a backdrop of planetary uncertainty we are making the close choices present successful the nationalist interest.”

She added: “Our program for alteration is working. But I cognize determination is much to bash and that is wherefore I’m determined we spell further and faster to marque moving radical amended off.”

The 0.7 per cent maturation means it came successful up of economists’ expectations of 0.6 per cent maturation for the quarter.

It was besides the highest GDP complaint since the archetypal 4th of 2024, erstwhile the system jumped by 0.9 per cent.

Economists astatine the Confederation of British Industry (CBI) said the emergence successful enactment was “a pleasant surprise”, but warned the spot of GDP implicit Q1 is “likely to beryllium a one-off”.

“Businesses stay cautious implicit hiring and concern plans fixed the steep emergence successful employment costs pursuing the Autumn Budget,” Ben Jones, pb economist astatine CBI said.

“Now is simply a captious clip for authorities to hardwire maturation into the system done the upcoming Spending Review.”

Company nationalist security contributions accrued from April, which immoderate economists person said volition unit firms to chopped jobs.

And the US has imposed a 10 per cent broad tariff connected astir UK goods entering the world’s biggest economy, which is expected to straight interaction exporters and has led to heightened uncertainty affecting businesses and households.

The latest figures amusement that economical maturation slowed to 0.2 per cent successful March, from 0.5 per cent successful February, arsenic enactment among UK factories began to slump.

Liz McKeown, ONS manager of economical statistics, said: “The system grew powerfully successful the archetypal 4th of the year, mostly driven by services, though accumulation besides grew significantly, aft a play of decline.

“Growth successful services was wide based, with wholesale, retail and machine programming each having a beardown 4th arsenic did car leasing and advertising.

“These were lone somewhat offset by falls successful education, telecoms and ineligible services.”

Ministers besides acknowledged that the latest GDP figures bash not yet relationship for the interaction of the Government’s hike successful nationalist security contributions for employers.

Asked astir the taxation rise, which came into unit successful April, Treasury curate Emma Reynolds told BBC Breakfast: “Sure that’s true, due to the fact that it’s astir the archetypal 4th of the year, truthful January to March. I mean, evidently I’m not going to beryllium present and foretell what mightiness hap aft that, but I deliberation the fundamentals of the system look precise strong.”

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