The UK’s economy has grown more than expected in the first three months of the year, following a rise in activity in March.
According to new figures from the Office for National Statistics (ONS), GDP (gross domestic product), a key measure of economy growth, is estimated to have grown by 0.2% in March, following a 0.5% expansion in February.
It reflects, across key sectors, services output rising by 0.4% in March, construction output growing by 0.5%, and production output falling by 0.7%.
GDP in the first quarter, meanwhile, is estimated to have grown by 0.7%, following an uptick of 0.1% in the previous quarter.
Ben Jones, lead economist, CBI, said: “The rise in activity in March was a pleasant surprise, coming on the back of the strong bounce in February.
“While the latest data adds to signs that a gradual recovery in household spending may be underway, the strength of GDP over Q1 is likely to prove a one-off.
“An up-tick in inflation and a cooling labour market will see real household income growth slow this year, though lower interest rates should encourage consumers to save less and spend more.
“Businesses remain cautious over hiring and investment plans given the steep rise in employment costs following the Autumn Budget. And the uncertain global economic backdrop is hardly conducive for long-term planning.
“Now is a critical time for government to hardwire growth into the economy through the upcoming Spending Review. Measures to accelerate tech adoption alongside a modern Industrial Strategy can support the UK’s investment and growth potential and bolster the UK’s competitive position.”
