pound dips a smidge, UK economy pumps up the heat
On Monday, the pound slipped by just 0.1% against the US dollar, ending around $1.3694. Meanwhile, the Office for National Statistics rolled out their first‑quarter data, showing the UK economy kicked off the year with a tidy 0.7% growth.
What the numbers say
- pound fell 0.1% to $1.3694
- ONS recorded 0.7% growth in Q1
- UK boasts the fastest G7 growth at the start of the year
Expert insights
Danni Hewson, head of financial analysis at AJ Bell, weighed in:
“It feels almost redundant that the UK delivered the fastest G7 growth at the start of the year.”
“Tariffs, tax hikes, and a bantering business climate have made many firms hit pause on future plans. Some are trimming labour costs to brace for whatever lies ahead.”
“That early burst in growth looks like a flare‑up, not the steady climb the government needs if it wants to keep the treasury canning without new tax rises or deeper cuts.”
Bottom line: The pound’s gentle wobble doesn’t signal doom, but the early growth surge might just be a one‑time show‑stopper – not the long‑term ticket to a leaner budget.
