15 May 2025The UK's economy grew by more than expected in the first three months of the year, according to the latest data from the Office for National Statistics (ONS). The economy expanded by 0.7% in the January-to-March period, which was stronger than the 0.6% that analysts had forecast. The ONS said growth was largely driven by the UK services sector, although production also 'grew significantly'. The economy grew by 0.2% in March, the ONS said, which was also better than the zero growth that had been forecast. Stuart Morrison, Research Manager at the British Chambers of Commerce (BCC), said: 'Better than expected Q1 growth of 0.7%, is evidence that the UK economy held up well at the start of the year, despite mounting headwinds. Strong performances in the services and production sectors are particularly welcome. 'However, context is crucial, as we've yet to see data showing the impact of the national insurance hike or the global tariff war. 'Businesses want urgent action from policymakers to help them invest, trade and recruit. A tax roadmap, covering national insurance and business rates, would give firms the certainty they need to plan ahead. Signing off more infrastructure projects in all parts of the UK will help support SMEs.'