UK economy grows at fastest quarterly rate in a year in boost for Reeves

Gross domestic product (GDP) increased by 0.7% between January and March, the Office for National Statistics said.

This means it came in ahead of economists’ expectations of 0.6% growth for the quarter.

It was also the highest GDP rate since the first quarter of 2024, when the economy jumped by 0.9%.

Ms Reeves said the figures “show the strength and potential of the UK economy”.

“Up against a backdrop of global uncertainty we are making the right choices now in the national interest,” she said.

Liz McKeown, ONS director of economic statistics, said: “The economy grew strongly in the first quarter of the year, largely driven by services, though production also grew significantly, after a period of decline.

“Growth in services was broad based, with wholesale, retail and computer programming all having a strong quarter as did car leasing and advertising.

“These were only slightly offset by falls in education, telecoms and legal services.”