The UK economy made its most important experience Development In a year early 2025, official figures have confirmed, inspired by large -scale strong domestic expenses.
As National statistics office (Ons), Gross domestic product ,Gross domestic product) Extended by an unchanged 0.7 percent between January and March. While the overall quarterly figure remained unchanged, ONS mentioned a slightly upward amendment for monthly development in March, now standing at 0.4 percent, above an early estimate of 0.2 percent.
This strong performance follows the zero increase recorded in January and 0.5 percent expansion in February, both figures are unpublished.
Domestic expenses were also revised from 0.2% to 0.4%, as the savings ratio fell to 10.9% in the quarter for the first time in more than two years, as consumers took a dip in their savings to spend.
The increase in the first quarter-which was unpounted from the initial estimate-2024 mark the highest GDP rate since the first quarter, when the economy jumped from 0.9%.
It was also a significant improvement on an increase of 0.1% seen in the last three months of 2024.
Liz McCain, ONS Director of Economic Statistics, said: “While there was an increase in the quarter overall, the updated set of our figures shows that the economy has still increased strongly in February, with development, it is now a little more in March.
“Services led to a widespread-based growth, while manufacturing also had a strong quarter.
“The savings ratio fell for the first time in two years in this quarter, as rising costs for items such as fuel, rent and restaurant contributed to high expenses, although it remains relatively strong.”
In the first quarter, the output in the service sector increased by 0.7%, while the production also increased by 1.3%, and the construction sector increased by 0.3%.
Experts stated that there were clouds on the horizon for the economy, a 0.3% contraction in the recent monthly GDP data.
Matt Swanel, Chief Economic Advisor to the EY Item Club, said: “After a strong start of 2025, the UK looks ready for another year of weak growth, continuing to fasten the headwind.
“At the top of weakening the increase in actual income, the fiscal policy has been tightened, while some houses will still feel the increased effects of the previous interest rate.
“Global trade is added to the headwind with high levels of market volatility and uncertainty.”
Tax Consultancy RSM UK Chief Economist Thomas Pugh said: “Further, the second quarter will look worse compared to the first quarter as some pebacks have been brought further from the activity to avoid taxes and tariffs.
He said, “Now the big question is whether the recent string of weakened data in retail sales and employment is a closed, due to tax growth and early shock of tariffs, or whether it is the beginning of a new trend,” he said.
