Thu, 15 May 2025

Thu, 15 May 2025 UK economy grew more than expected in first three months of year

The economy grew 0.7% between January and March, before UK and US tax rises were brought in during April.

* The UK economy grew by 0.7% in the first three months of the year, beating forecast estimates.
* Growth was driven mainly by the services sector and production also saw significant growth.
* The strong rate of growth is unlikely to continue due to the US imposing import tariffs and the increase in UK employer taxes in April.
* Chancellor Rachel Reeves praised the figures but analysts warned that they may not be sustained.
* Shadow chancellor Mel Stride criticised the rise in employers' National Insurance payments, calling it a "jobs tax".
* The economy grew by 0.2% in March, beating forecast estimates of zero growth.
* Business investment is up nearly 6% on the quarter and the service sector is performing well.
* Analysts are skeptical about the sustainability of the growth, with one predicting that the strong rise in GDP may be "as good as it gets for the year".
* The UK's payrolls saw a decline in the first three months of the year.
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