Eng
Between January and March, Britain's economy accelerated to show growth of 0.7%, up sharply from an increase of 0.1% in the last three months of 2024. That was above the 0.6% growth forecast in a Reuters poll of economists and which was also expected by the Bank of England.
Business investment grew strongly, expanding by 5.9% from the last quarter of 2024, the biggest increase in two years.
However, the BoE said last week it expected the strong growth in the January-to-March period would prove temporary with output likely to expand by 1% this year, speeding up only slightly to 1.5% growth in 2027.
Trump's trade tariffs are expected to slow the global economy. But last week's new trade deal signed with the United States could limit the blow to Britain's economy. Under the deal the U.S. will reduce higher tariffs on steel and aluminium but will continue to impose a new 10% tariff on imports of most British goods.
So far, Britain's consumers have remained largely unfazed by worries about the outlook for the economy. Data published this week showed a rise in their spending over March and April.
Source: reuters.com