Rachel Reeves sent nightmare warning of 'grim' future despite GDP boost

Rachel Reeves should not be celebrating the UK's GDP boost quite so much, according to an independent economist.

Julian Jessop who boasts a significant social media following has responded to the seemingly positive news with some humbling data.

Sharing a graph, Julian wrote on X:"The more timely business surveys suggest that the recovery in the private sector has already lost momentum, with April looking grim again".

The graph shows the UK's PMI Output Index slipping back into negative territory for April, wiping out postive momentum in March.

The index measures changes in monthly production and service sector output, and is a key tool for tracking economic growth.

The latest financial data on Thursday showed the UK economy grew by a bigger than forecast 0.7% in the first three months of the year, in a huge boost for the beleaguered Chancellor.

The Office for National Statistics said gross domestic product (GDP) rose at the strongest pace in a year, beating City predictions of a 0.6% increase.

The growth in GDP was predominately driven by the UK's dominant services sector, with retail, wholesale and computer programming all having a strong start to the year, as did car leasing and advertising.

Production - which includes manufacturing, mining and energy - also rose by 1.1%, while activity in the construction sector showed no growth.

However, experts have warned that the near future holds many challeneges for the British economy in the wake of Trump's introduction of tariffs and that growth is likely to be much weaker.

Last week, the Bank of England forecast near stagnant activity for the rest of the year, citing the global uncertainty caused by the US attack on free trade.

Sir Keir Starmer has attepmted to mitigate the fall out from US tariffs by striking a trade deal with the Trump administration which will reduce some of the levies on cars, aluminium and steel.

The UK has also cocluded a trade deal with India and the government is now looking to forge closer trade ties with the EU at an upcoming summit.

Reeves said the figures showed the government's plan was working and vindicated Labour's approach to the economy

"In the first three months of the year, the UK economy has grown faster than the US, Canada, France, Italy and Germany," she said

"Up against a backdrop of global uncertainty we are making the right choices now in the national interest.

"Since the election we have already had four interest rate cuts, signed two trade deals, saved British Steel and given a pay rise to millions by increasing the minimum wage."