"Official figures showed GDP grew by 0.3 per cent during the month after a 0.4 per cent rise in February, while the economy expanded by 0.6 per cent across the first quarter of 2026. The stronger-than-expected performance came even as global markets were rattled by surging oil prices, mounting instability in the Middle East and growing fears of a prolonged energy shock following the conflict involving Iran. Investors welcomed the figures as evidence that the British economy had so far remained more resilient than many analysts predicted."
"Services activity again drove much of the growth, with technology, advertising and professional sectors performing strongly, while construction activity also recovered after a sluggish start to the year. However, economists cautioned that the resilience may prove temporary as the full effects of higher energy prices and geopolitical uncertainty continue feeding through into the wider economy. Oil prices remain elevated amid continuing disruption around the Strait of Hormuz, while businesses across manufacturing, transport and retail have warned of rising costs and weaker consumer demand."
"The latest figures will provide some relief for Chancellor Rachel Reeves after weeks of warnings about stagflation, rising borrowing costs and weakening consumer confidence. The FTSE 100 was expected to rise in early trading amid improving sentiment surrounding Donald Trump's talks in China and hopes diplomatic efforts could help stabilise markets already shaken by the Iran crisis. Analysts also warned the figures are unlikely to ease the mounting political pressure on Sir Keir Starmer, whose authority has been badly weakened following Labour's disastrous local election results and escalating unrest inside his own party."
GDP grew 0.3% in March after a 0.4% rise in February, and expanded 0.6% across the first quarter of 2026. Growth came despite surging oil prices, instability in the Middle East, and fears of a prolonged energy shock tied to conflict involving Iran. Services activity drove much of the increase, with technology, advertising, and professional sectors performing strongly, while construction recovered after a weak start. Investors viewed the results as evidence of resilience and provided relief amid warnings about stagflation, borrowing costs, and weakening consumer confidence. Economists cautioned the strength may be temporary as higher energy prices and geopolitical uncertainty continue affecting manufacturing, transport, and retail, alongside political pressure on the prime minister.
Read at London Business News | Londonlovesbusiness.com
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