The British Chambers of Commerce (BCC) has welcomed official GDP figures showing the UK economy expanded by 0.7 % in the first quarter of 2025.
This outperformance, against a backdrop of global uncertainty, has buoyed confidence amongst both manufacturers and service-sector firms, with regional chambers noting renewed optimism for the months ahead.
It was very much services and production that has led the upswing.
Services output rose by 0.7 %, reflecting robust consumer spending and a rebound in sectors such as professional services and information technology.
Meanwhile, manufacturing picked up pace, up 0.8 % on the quarter, as firms benefited from stronger order books and improved supply-chain resilience.
Taken all together, these gains suggest the economy is finding fresh momentum after a sluggish end to 2024.
Across the country, regional chambers of commerce have reported that businesses feel more secure investing and hiring.
In the Midlands, firms in automotive and advanced manufacturing note a uptick in new contracts, whilst in the Southwest, tourism and hospitality operators are preparing to expand staff numbers ahead of the summer season.
This positivity is echoed in Scotland and Northern Ireland, where local BCC branches highlight increased export inquiries and early signs of capital investment.
Although the bounce in Q1 is encouraging, the BCC stresses the need for stable policy and continued support for businesses to maintain the upturn.
Rising input costs and international headwinds, such as trade tensions and fluctuating energy prices, still pose risks.
The BCC’s Quarterly Economic Forecast expects modest growth for the rest of the year but warns that this will depend on firms’ ability to manage inflationary pressures and labour shortages.
In response to the positive data, many companies are accelerating digital transformation and skills development.
Business leaders cite investments in automation, staff training and sustainable practices as key priorities for locking in productivity gains. The BCC is calling on government to back these efforts with targeted support schemes, boosted R&D incentives and streamlined export procedures—measures it believes will help turn this quarter’s surprise into a sustained recovery.
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