The economy unexpectedly grew in the first month of the Iran war, according to official figures.
GDP, a key economic measure of everything produced in the economy, expanded 0.3% in March, data from the Office for National Statistics (ONS) shows.
Economists polled by Reuters news agency had predicted a contraction of 0.2%.
The March figures are also an increase on the month before, when GDP rose 0.4%.
There was also growth in the first three months of the year, with expansion of 0.6%, ONS data also showed on Thursday morning.
Following the news, Chancellor Rachel Reeves appeared to caution against political instability and a possible leadership challenge against Prime Minister Keir Starmer.
“Now is not the time to put our economic stability at risk. To do so would leave families and business worse off,” she said.
“Today’s figures show the government has the right economic plan.”
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(c) Sky News 2026: UK economy unexpectedly grew in first month of Iran war, new GDP figures show
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