Britain's economy grew unexpectedly in March, capping another strong first quarter. GDP rose 0.3% month-on-month, beating forecasts of a 0.2% contraction.
Services, construction, and manufacturing all posted strong growth. The first quarter expansion of 0.6% marks the third year running of robust Q1 performance.
Economists cite measurement issues post-pandemic and stockpiling due to the Iran war as factors. Raj Badiani from S&P Global Market Intelligence noted that while Q1 was strong, recession risks have risen, forecasting contraction in Q2 and Q3.
Partial spending data for April suggests weakening heading into Q2. Political uncertainty in Westminster adds to the cautious outlook.
The BoE is expected to hold rates at 3.75%, though over a third of economists polled expect at least one hike due to Iran war-driven inflation. Trade data showed a £1.8 billion jump in fuel imports in March.
