Britain’s Chancellor of the Exchequer Rachel Reeves, center, speaks with the media at the Rolls-Royce factory in Derby, England following the announcement from the Office for National Statistics that the UK economy grew by 0.7% between January and March on May 15. (AP)

LONDON, May 15, (AP): The British economy grew at its fastest rate in a year during the first quarter of 2025, official figures showed Thursday, in a welcome boost to the Labour government, which has made lifting the country’s growth its top priority. The Office for National Statistics said growth, as measured by gross domestic product, increased by 0.7% in the first quarter of the year from the final three months of 2024, with the country’s dominant services sector doing particularly well.

The first quarter increase makes the British economy the fastest-growing among the Group of Seven leading industrial nations. Growth was modestly ahead of market expectations for a 0.6% increase. It was also the biggest increase since the first quarter of 2024, when the economy expanded by 0.9%. Treasury chief Rachel Reeves welcomed the growth leap, and said the figures showed the choices made by Labour since it was elected last July were beginning to pay off.

“We’re set to be the fastest growing economy in the G-7 in the first three months of this year and that’s incredibly welcome, but I know that there is more to do,” she said while on a visit to a Rolls-Royce factory in Derby, northern England. Most economists think is likely to slow down in the second quarter of the year, partly because of the global uncertainty generated by U.S. President Donald Trump’s tariff policies.

Though most tariffs were paused for 90 days following the ensuing market turmoil, including the 10% baseline tariff applied to U.K. goods entering the U.S., the backdrop for the global economy remains highly uncertain, particularly if the U.S.-China trade war persists. Some of that uncertainty, with regard to the British economy, lifted Thursday when both Trump and British Prime Minister Keir Starmer separately outlined details of a trade deal between the U.S. and the U.K.

Though Trump kept the 10% baseline tariffs on U.K., he agreed to reduce the levies on British autos, steel and aluminum. Sanjay Raja, chief U.K. economist at Deutsche Bank, said the growth uptick will likely be short-lived, especially during the second quarter when trade uncertainty will be at its peak. “Exporters will likely see reduced demand as well from higher U.S. tariffs and weaker global demand,” he said. Economists said growth will likely falter in the second quarter as new taxes on business were imposed in April. Also a raft of price rises during the month, including domestic energy and water bills, are expected to keep a lid on consumer demand.

Currency traders watch monitors near a screen showing the Korea Composite Stock Price Index (KOSPI) in Seoul, South Korea on May 15. (AP)

WASHINGTON, May 15, (AP): World shares and US futures slipped Thursday after US stocks drifted to a mixed close on Wall Street. Oil prices fell about $2 a barrel. China moved to reverse some of its “non-tariff” measures against the US as agreed with Washington in their temporary trade war cease-fire and most markets traded in a narrow range.

The future for the S&P 500 lost 0.3% while that for the Dow Jones Industrial Average was down 0.5%. Germany’s DAX shed 0.8% to 23,344.95, while the CAC 40 in Paris was down 0.4% at 7,804.46. Britain’s FTSE 100 slipped 0.5% to 8,540.97. In Asian trading, Japan’s Nikkei 225 index dropped 1% to 37,7755.51. Computer chip-related stocks were among the biggest decliners, with Disco Corp falling 3.2% and Advantest down 1.1%.

Hong Kong’s Hang Seng dropped 1.1% to 23,382.26, while the Shanghai Composite index lost 0.7% to 3,380.82. Taiwan’s Taiex fell 0.2% and India’s Sensex also was down 0.2%. In Australia, the S&P/ASX 200 edged 0.2% higher to 8,297.50. South Korea’s Kospi gave up 0.7% to 2,621.36. On Wednesday, a choppy day of trading on Wall Street ended with a mixed finish as gains by several big technology stocks helped temper losses.

The S&P 500 edged up 0.1% to 5,892.58 and the Dow Jones Industrial Average slipped 0.2% to 42,051.06. The Nasdaq composite rose 0.7% to 19,146.81. Super Micro Computer surged 15.7% after signing a partnership agreement with Saudi Arabian data center company DataVolt. Advanced Micro Devices gained 4.7% after announcing a $6 billion stock buyback program. Nvidia rose 4.2% and Google parent Alphabet added 3.7%. The US will release its April report for inflation at the wholesale level on Thursday, and economists expect an easing of price pressures.   

Gold prices rise after a sharp loss, supported by softer US inflation and the US-China tariff deal.

NEW YORK, May 14: Gold prices rebounded on Tuesday, driven by bargain-hunting after a sharp loss the previous day, with softer-than-expected inflation data from the U.S. providing additional support.

As of 1357 ET (17:57 GMT), spot gold rose 0.4% to $3,246.95 per ounce, recovering from a low of $3,207.30 on Monday. U.S. gold futures also settled 0.6% higher at $3,247.8.

Bart Melek, head of commodity strategies at TD Securities, commented on the price movement: “We had a big correction in gold on Monday following the news of a deal between the U.S. and China. However, with tariffs on China still at 30%, this remains negative for the economy.”

The U.S. and China announced a 90-day pause on tariffs on Monday. As part of this agreement, the U.S. agreed to reduce tariffs on Chinese imports from 145% to 30%, while China pledged to lower duties on U.S. imports from 125% to 10%.

Gold prices had surged to multiple record highs in 2025, driven by concerns over economic slowdowns following U.S. President Donald Trump’s sweeping tariffs, strong central bank buying, geopolitical tensions, and increased investment in gold-backed exchange-traded funds.

In other news, the U.S. Consumer Price Index (CPI) increased by 0.2% last month, according to the Bureau of Labor Statistics. Economists had forecast a 0.3% rise.

Jim Wyckoff, senior analyst at Kitco Metals, pointed out that the inflation report “leans slightly favorable for the precious metals markets because it does not pose a problematic inflation scenario that would deter the Federal Reserve from cutting interest rates.”

Markets expect the Federal Reserve to resume its policy easing in September, which typically makes non-yielding assets like gold more attractive.

Other precious metals saw gains as well, with spot silver rising nearly 1% to $32.89 an ounce, platinum climbing 1.4% to $985.92, and palladium gaining 1% to $955.15.