UK economy grew unexpectedly in March despite the Iran war
UK gross domestic product expanded by 0.3% in March, beating analyst expectations of a small contraction. The figures suggest the economy is showing more resilience than expected to the energy and trade shocks of the Iran war.
The UK Office for National Statistics reported that the economy grew by 0.3% in March, defying analyst forecasts of a small contraction. The reading paints a more resilient picture than expected given the pressure on global energy prices from the Iran war.
The BBC's economics editor Faisal Islam said services and digital activity were the main drivers, while manufacturing remained weak under the weight of higher oil prices linked to the Iran conflict.
The figures will sharpen the debate at the Bank of England ahead of its summer rate decision. The bond market is balancing higher global rates against persistent energy costs; sterling firmed modestly against the dollar after the release.
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