UK economy sees surprise growth in March despite Iran war

The UK economy unexpectedly grew by 0.3% in March, defying analyst predictions of contraction, with growth in the first quarter reaching 0.6% driven by retail and construction rebounds. The ONS attributed March's growth partly to consumers and businesses accelerating spending in anticipation of price increases resulting from the Iran conflict, particularly in car sales and fuel purchases. Economists warn that negative impacts from the war—including rising energy, fuel, and food costs—are expected to significantly dampen economic growth and household spending in coming months.