UK GDP Grows 1.3% YoY in Q1

2025-05-15 07:09 By Joana Taborda 1 min. read

The British economy grew by 1.3% year-on-year in the first quarter of 2025, slightly below the 1.5% expansion recorded in the previous quarter, but exceeding market expectations of 1.2%, according to preliminary estimates.

The services sector expanded by 1.5%, down from 1.9% in Q4, while construction output rose by 0.9%, matching the previous quarter's growth.

In contrast, industrial production continued to decline, though at a slower rate (-0.2% vs -1.1%).

On the expenditure side, household spending growth slowed to 0.7% from 1.2%, and government spending also eased to 1.3% from 2.6%.

However, gross fixed capital formation accelerated significantly, rising 4.4% compared to 2.2% in Q4, driven largely by an 8.1% surge in business investment (vs 1.8% previously).

Exports declined marginally by 0.3% (vs -3.5%), while imports saw a sharp increase of 7.6% (vs 5.0%).

On a quarterly basis, GDP grew by 0.7%, the strongest performance in three quarters.



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