Economy's strong start set to tail off

THE UK economy grew at the fastest pace for more than a year at the start of 2025, official figures confirm, as buoyant household spending helped drive the rebound.

- GEORGE THOMPSON

The Office for National Statistic (ONS) said gross domestic product (GDP) rose by an unrevised 0.7% between January and March.

The ONS said that while the quarterly out-turn was unrevised, monthly growth was slightly higher than first thought in March, at 0.4%, compared with the initial estimate of 0.2%.

January saw zero growth and February saw expansion of 0.5%, both unrevised.

Household spending was also revised up, from 0.2 to 0.4%, as the savings ratio fell for the first time in more than two years, to 10.9% over the quarter, as consumers dipped into their savings to spend.

The first-quarter growth figure unrevised from the initial estimate marks the highest GDP rate since the first quarter of 2024, when the economy jumped by 0.9%.