The U.K. economy posted its best growth in 18 months in March, new data indicated on Friday, bringing some relief to Chancellor Rachel Reeves at the end of a torrid week.
Preliminary data from the Office for National Statistics showed gross domestic product grew 0.5 percent from January, helped by strong contributions from industry and construction.
The ONS’s monthly GDP series is notoriously volatile, and the quality of its economic data in general has come under increasing scrutiny in recent months, but analysts said the figures still provided some basis for optimism. A less volatile measure that tracks GDP over three months showed that it rose 0.6 percent from the three months through November. The ONS also revised up its figures for January to show GDP unchanged, rather than the 0.1 percent drop initially reported.
The numbers come at the end of a week in which financial markets reacted badly to the imposition of trade tariffs by U.S. President Donald Trump. Heavy selling in bond markets pushed up the government’s long-term borrowing costs by nearly half a percentage point, with the Bank of England warning on Wednesday that the volatility could be repeated if Trump continues on his current course.
The pound rose above $1.30 in response to the news while U.K. stock markets opened around 0.5 percent.
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