MNI BRIEF: UK Economy Sees Strong Growth In Q1

The UK economy grew 0.7% q/q in the three months to March, the Office for National Statistics reported Thursday, outstripping Q4's 0.1% growth and analayst expectations for growth of 0.6%.

Growth was driven by an increase of 0.7% in the services sector, production also grew, by 1.1%, while the construction sector showed no growth. Real GDP per head is estimated to have grown by 0.5% in Quarter 1 2025, following two consecutive quarterly falls.

Monthly real GDP is estimated to have grown by 0.2% in March, following unrevised growth of 0.5% in February, helped by a strong service sector. (see MNI INTERVIEW: Consumer Boost Lead For UK Growth- ONS Fitzner )

The Bank of England warned last week following the latest interest rate cut that growth in Q1 will be 'significantly above' underlyling trend momentum of the economy.