Britain’s economy posted its strongest quarter in a year between January and March 2025, according to the Office for National Statistics. GDP grew by 0.7%, matching preliminary estimates, largely driven by a flurry of homebuyers rushing to complete purchases before a tax break deadline, and manufacturers ramping up output ahead of anticipated U.S. tariffs.

Growth in March was upwardly revised to 0.4%, from an initial 0.2%, indicating broader momentum at the quarter’s close. Household spending also gained steam, climbing 0.4%—double earlier forecasts—as families invested in housing, goods, and transport.

However, signs point to a slowdown. April’s output fell 0.3% from March, a dip attributed to a tax-grab on employer costs and lingering trade uncertainty with the U.S. The Bank of England predicts growth to slow to roughly 0.25% in Q2.

Economists caution that the Q1 jump may reflect short-term factors. Government and BoE officials are now watching carefully: solid momentum could reduce pressure for further tax rises, while a moderation in growth might influence upcoming interest rate decisions.

For households, the picture is mixed. Homes remain desirable, manufacturers are expanding, but consumers may tighten belts in the months ahead if income pressures persist. Overall, Q1 performance brings relief—but it’s tempered by signs of a fragile rebound.