UK economy grew at fastest pace in a year in Q1

[LONDON] Britain’s economy expanded at its fastest pace in a year in the first three months of 2025 as homebuyers rushed to beat a deadline on property purchases and manufacturers sped up output ahead of US President Donald Trump’s higher import tariffs.

Gross domestic product grew by 0.7 per cent in the first three months of 2025, confirming a preliminary estimate and the fastest pace since the first quarter of 2024, the Office for National Statistics said.

Growth in March alone was revised up to 0.4 per cent from a previous reading of 0.2 per cent but the increase was not enough to bump up the quarterly growth reading, the ONS said.

Household expenditure grew by 0.4 per cent in the January-to-March period, revised up from an initial estimate of an increase of 0.2 per cent, driven by housing and household goods and services and transport.

The jump in Britain’s economic output in early 2025 is not expected to last into the rest of this year.

Data has already shown that gross domestic product fell by 0.3 per cent in April from March although the drop was exacerbated by one-off factors.

Britain’s property market saw a sharp increase in activity in the run-up to the March 31 expiry of tax break for some homebuyers.

The ONS said manufacturing grew by a strong 1.1 per cent in the first quarter – ahead of the increase in US import tariffs in April – compared with the last three months of 2024.

“The saving ratio fell for the first time in two years this quarter, as rising costs for items such as fuel, rent and restaurant meals contributed to higher spending, although it remains relatively strong,” ONS director of economic statistics Liz McKeown said. REUTERS