The economy of the United Kingdom grew by 0.7% in the first quarter, the best performance in four quarters.

Before Donald Trump's trade war undermined business and Consumer confidence, the United Kingdom's economy experienced its strongest quarterly growth in a year. The United Kingdom's National Statistics office announced on Thursday that the country's gross domestic product (GDP) increased by 0.7% quarter-on-quarter in the first quarter; this is an increase from 0.1% in the last quarter of 2024 and also higher than the 0.6% expected by the Bank of England and private sector economists. Economic output in March grew by 0.2%, rather than stagnating as economists had predicted. This indicates that, before significant tax increases hit employers and Trump was set to announce comprehensive global tariffs, businesses and Consumers remained resilient this month. The service and construction sectors both grew strongly, helping to offset the impact of a sharp decline in manufacturing. Economic growth is good news for Keir Starmer's Labour government, which has been working hard to drive economic development since winning the election last summer. However, economists urge caution. The first quarter's economy was mainly driven by strong growth in February, as factories ramped up production in an attempt to increase exports to the U.S. ahead of expected tariffs imposed by Trump.