"Growth picked up in the first quarter of the year, led by broad-based increases across the services sector. Within that, wholesale, computer programming and advertising performed particularly well."
"The figures, the last to capture activity before the outbreak of the Iran war began rattling global markets, point to a services-led upswing that has handed the Chancellor a brief reprieve as she braces for what most economists agree will be a far bleaker summer."
"According to the ONS, the services sector, still the engine room of the British economy, grew by 0.8 per cent over the quarter, with production nudging up 0.2 per cent and construction rising 0.4 per cent. Wholesale, computer programming and advertising were the standout performers."
"Chancellor Rachel Reeves seized on the figures to defend her fiscal strategy, telling reporters that "now is not the time to put our economic stability at risk". "Today's figures show the government has the right economic plan," Reeves said. "The choices I have made as Chancellor mean our economy is in a stronger position as we deal with the costs of the war in Iran. This government is getting on with the job of building an economy that is stronger, more resilient, and prepared for the future.""
GDP expanded 0.3% in March and 0.6% across the first quarter. Services grew 0.8% over the quarter, while production rose 0.2% and construction increased 0.4%. Wholesale, computer programming, and advertising were the strongest areas. The March data reflect only the opening days of the Iran war, so later figures are expected to show greater disruption. Small and medium-sized enterprises face a more uncomfortable outlook as costs spread through global supply chains linked to the Strait of Hormuz. The Chancellor used the figures to defend her fiscal strategy and argue the economy is better positioned to handle war-related costs.
Read at Business Matters
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