Firms show resilience as economy grows despite Iran war - Chamber

The UK economy has grown by 0.6 per cent in the first three months of the year, according to the Office for National Statistics (ONS).

It was driven by a 0.8 per cent increase in the key services industry, while production and construction outputs have also grown by 0.2 per cent and 0.4 per cent respectively.

Data also revealed that economic growth during March, the first full month after the Iran war, was 0.3 per cent.

During this time, services and construction output both grew, by 0.3 per cent and 1.5 per cent, respectively. This growth was partially offset by a 0.2 per cent fall in production.

Speaking about the data, Greater Birmingham Chamber of Commerce’s senior policy advisor Ruth Fleet (pictured), said: “My prediction last month that March’s GDP data would show the impact of the US-Iran conflict on business has not yet been realised, although it may still be, and we are in fact continuing to see growth in the UK economy.

“While the picture is mixed across sectors, this underlines the resilience of the business community and shows that there is scope for much greater growth if the Government can work with businesses to ease some of the pressures they are facing.

“Many of our members are still being squeezed by the cumulative tax burden, high business rates, and the cost of energy.

“The Chamber strongly encourages the Government to focus on stability and to work with businesses to give them the confidence they need to succeed.”