UK GDP grows estimated 0.7% in Q1 2025

In output terms, growth in Q1 2025 was driven by an increase of 0.7 per cent in the services sector. Production grew as well, by 1.3 per cent.

In expenditure terms, growth in the latest quarter was driven by increases in gross fixed capital formation, net trade and household consumption, an ONS release said.

Nominal GDP in the United Kingdom is estimated to have increased by 1.5 per cent in Q1 2025, mainly driven by an increase in compensation of employees.

Real GDP per head is estimated to have grown by 0.6 per cent in the quarter, revised up from the first estimate increase of 0.5 per cent.

ONS said real household disposable income per head—an important measure of living standards—fell by 1 per cent in Q1 2025 after growth of 1.8 per cent in Q4 2024, in the first quarterly decline for almost two years.

The households’ saving ratio, which estimates the percentage of disposable income Britons save rather than spend, fell by 1.1 percentage points to 10.9 per cent, although this remains historically high.

ALCHEMPro News Desk (DS)