The UK financial system expanded 0.7 per cent within the first quarter, surpassing expectations and delivering a lift to Labour forward of the impression of Donald Trump’s tariffs.
Thursday’s GDP determine for the primary three months of the yr was above each the 0.6 per cent forecast by economists in a Reuters ballot and the 0.1 per cent growth within the fourth quarter.
The financial system grew 0.5 per cent in February and 0.2 per cent in March, in keeping with the Workplace for Nationwide Statistics. Economists had forecast no progress for March.
Thursday’s figures are primarily based on knowledge compiled earlier than Trump’s April 2 announcement of tariffs on international locations internationally, together with 10 per cent duties on imports from the UK.
Many economists say the tariffs will hit international progress, although Trump has scaled again lots of them.
Whereas Washington and London agreed a restricted commerce deal final week — decreasing tariffs on UK automobile and metal exports to the US — the flat 10 per cent cost stays in place.
The Labour authorities says progress is its high precedence, though its critics accuse it of slowing down the financial system with measures reminiscent of a rise in employers’ nationwide insurance coverage contributions that took impact final month.
The Financial institution of England has already warned that first-quarter progress is more likely to be “considerably above” the UK’s underlying financial momentum, highlighting weak productiveness and excessive borrowing prices.
The UK GDP for the primary quarter of this yr compares with a 0.4 per cent growth within the Eurozone throughout the interval and a 0.1 per cent contraction within the US — figures that have been distorted by a surge of imports
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