Sunak will welcome growth - but there could be a catch

"Wow," was the reaction of one economist as the UK officially exited last year's recession at a speed no one had really expected. Many of those outside of the City might scratch their heads and ask how quarterly growth of 0.6 per cent is anything to get excited about. But if you follow this stuff, it is.

- JAMES MOORE

UK plc pumped out billions of pounds more than the forecasts said it would. You could almost hear the anguish as scribblers in London's financial centre had to delete their pre-written responses and start again. "The economy looks to have turned a corner, leaving recession firmly behind it,” said Investec's Ellie Henderson. "We expect economic momentum to continue to be supported over the coming quarters."

It'll be music to the beleaguered prime minister's ears. He also used the phrase "turned a corner" in his reaction. Rishi Sunak badly needs something to come good for him if his awful polling numbers are to change. If Henderson is right, the economy could be just the ticket.

The dominant services sector delivered its first positive result since the first quarter of 2023; production (manufacturing, etc) burned similarly brightly, with only construction remaining under a cloud. Even the stock market joined the party, recording a new record high, although UK plc's cheery update played only a small part in that. The FTSE 100's top companies are international behemoths, many from the natural resource sector, in which there may be deals to be done and rising prices for their products.