Hopes for a rebalancing of the UK economy were fuelled today as trade improved, despite a stronger pound, and manufacturers had their best quarter since 1999.
Export volumes leapt 5.9% against a 3.2% rise in imports, helping the UK close its overall trade gap to just £1.3 billion in March. ING economist James Knightley said there was an “outside chance” the economy grew even faster than the 0.8% estimated in the first quarter of the year, as sterling’s strength pushes up the value of exports and reduces import costs.
The Office for National Statistics said manufacturing output grew 1.4% in the first quarter, while construction rose twice as fast as expected in the same period.
The figures came as the latest estimates from the National Institute of Economic and Social Research were set to show the economy is virtually back to its pre-recession peak of 2008.
