The UK economy grew by 0.7% at the start of this year.

This was better than expected, but this level of growth is not predicted to last.

It’s better than forecast
The numbers matter because a higher growth rate usually means people are getting paid a little bit more, can spend more and more jobs are created.

Before the announcement, experts expected the economy to grow by 0.6% between January and March, compared with the last three months of 2024.

The fact the actual number is a tiny bit higher at 0.7% suggests people were willing to spend more than was expected.

The Office for National Statistics (ONS), which works out the figure, said spending on services such as retail, hospitality and finance in particular was strong.

The growth figure for March 2025 also beat expectations.

Analysts predicted no growth at all in March, but the economy ended up expanding by 0.2% that month. Read more