Economy powers on – and faster than eurozone!

THE economy’s growth gathered pace in the first three months of this year as manufacturing surged and business investment picked up.

Growth hit 0.5 per cent – up from a sluggish 0.2 per cent at the end of 2018 – as firms ploughed cash into new projects. The eurozone grew by only 0.4 per cent, and France by only 0.3 per cent. The UK improvement was powered by the manufacturing sector, which posted its best quarter since 1988 with a rise of 2.2 per cent, according to the Office for National Statistics.

It is thought much of this expansion was driven by companies scrambling to meet orders ahead of Britain’s expected departure from the European Union in March.

The increase may also have partly been down to stockpiling, as companies stashed goods and materials to prepare for any potential trade disruption.

Imports of goods and services rose to £179.5billion, up 4.4 per cent in a year, and exports fell 0.8 per cent to £161.2billion. It meant the difference between the two – the trade deficit – rose to a record £18.3billion.

Separately, business investment rose by 0.5 per cent following four consecutive quarters of decline last year.

Experts said the economy was holding up well despite the turmoil in Westminster.

Seamus Nevin, chief economist at Make UK, said: ‘This data would on the face of it show the first flowering of spring, and come as a welcome respite from the more negative economic news of recent times.’