The latest GDP data, published by the Office for National Statistics, shows a much better picture than expected. However the figures relate to the period before the National Insurance rise and the new US Tariffs.
Responding to the data, Stuart Morrison, Research Manager at the British Chambers of Commerce said: “The stronger than expected GDP rebound in February, and positive data for the three months, are welcome news. There was an encouraging story from both the services and manufacturing sectors.
“However, businesses across the UK are under no illusion - significant sustained growth continues to remain elusive.
“Events of recent weeks will have substantially changed the growth picture going forward. Businesses are now facing the double-edged sword of rising domestic costs, including the national insurance rise, and growing global trade uncertainty. However, it will be several months before we see the real impact on economic data.
“In the search for growth, much will hinge on the upcoming industrial strategy. We also need to see urgent action by ministers on business rate reform, infrastructure and export support. Government should be doing all it can to help business navigate the choppy waters both at home and abroad.”
Chris Fletcher, Policy Director at Greater Manchester Chamber, added: “Coming at the end of what has been a roller coaster of a week for global trade these figures are definitely welcome. They are however a reflection on what was happening two months ago and since then businesses have been hit with the start of additional National Insurance contributions and, of course, the turmoil created by President Trump’s decisions and views as regards tariffs and wider global trade.
“The Chambers’ last QES survey extended beyond the period of these GDP figures and the drop off in confidence and activity was noticeable as March progressed. With significant challenges still ahead these figures are good and hopefully will create some form of firm foundation for going forward but businesses will need every bit of help and support government can muster."