LONDON, The UK economy expanded by 0.6% in the first quarter of 2025, according to the latest data released by the Office for National Statistics (ONS), exceeding initial forecasts. This growth was primarily driven by a rebound in the services sector, which includes finance, professional services, and hospitality.
Despite this positive start, economists warn that the overall economic outlook remains uncertain. Global trade tensions continue to disrupt supply chains, while domestic policy challenges, including inflationary pressures and political uncertainty, weigh on business confidence and investment.
The manufacturing sector showed mixed results, with output growth slowing compared to the previous quarter. Additionally, consumer spending, though resilient, faces headwinds from rising living costs and stagnant wage growth.
The Bank of England has kept a close eye on these developments and recently adjusted monetary policy to balance growth and inflation risks. Analysts emphasize that the UK’s economic trajectory will heavily depend on how these external and internal factors evolve in the coming months.
