Responding to the latest GDP 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.”

Responding to the latest ONS data on trade, William Bain, Head of Trade Policy at the BCC, said: 

“There are clear signs that UK firms increased goods exports to the US ahead of the introduction of tariffs. Data for the past three months shows a 23% increase in the value of goods flowing from the UK across the Atlantic.

“Looking more widely, while overall exports grew in February, the rate of growth slowed substantially. It was a static month for our international trade in services, and goods exports to the EU fell. This was counterbalanced to a degree by 2.5% month-on-month growth, in volume terms, to rest of the world.

“This muted trade performance reflects the growing global uncertainty on trading conditions. With the effects of new US tariffs still reverberating around the world, UK firms will need resilience and agility to respond.

“Securing a deal with the US, removing trade barriers with the EU, and maximising potential in Indo-Pacific markets will be key to cushioning the negative impacts of the sweeping new US tariffs.”