Stories

Thu, 14 May 2026

Thu, 14 May 2026 UK economy sees surprise growth in March despite Iran war

The economy grew by 0.3% in the month, official figures show, confounding analysts' forecasts of a small contraction.

* UK economy grew by 0.3% in March, defying analysts' forecasts of a small contraction
* Economic growth in the first three months of the year was 0.6%, led by a rebound in retailing and construction
* Quarterly growth is the fastest for a year and the highest among G7 countries to report data so far
* Government's economic plan deemed successful, with Chancellor Rachel Reeves saying it has "the right economic plan"
* Shadow chancellor Mel Stride said Labour leadership contest is destabilizing Britain's economy
* Europlaz Technologies' commercial director Rory O'Keeffe said price rises due to the war in Iran are immediate and affecting operations
* Capital Economics' Ruth Gregory predicts GDP growth will weaken from May, with a possible mild recession on the horizon