The UK economy grew in the first quarter, showing greater resilience than expected only a few months ago, although March’s performance was much worse than expected.
Gross domestic production, or GDProse 0.1% between the last quarter of 2022 and the first three months of this year, according to data released Friday by the Office for National Statistics.
Thursday, the bank of england said he expected the economy to stagnate in the first and second quarters, with growth accelerating the rest of the year. This means he no longer expected a recession thanks to lower energy prices, stronger global growth and stronger consumer and business confidence. In February, the BoE predicted an economic contraction that would last through 2023 and the first quarter of next year.
NSO data showed the quarterly rate was boosted by growth in January, revised up to 0.5%, while output fell 0.3% between February and March as the services sector stuttered .
Economists polled by Reuters had expected GDP to be flat in March.
Darren Morgan, director of economic statistics at the ONS, said the fall in March was due to “widespread declines in the services sector”.
He explained that despite the launch of new license plates, car sales were weak by historical standards – continuing the trend seen since the start of the pandemic – with warehousing, distribution and retail also having a mediocre month.
These declines were partially offset by a good month for manufacturing as well as growth in gas production and distribution and construction.
Jeremy Hunt, the Chancellor, said: “It’s good news the economy is growing, but to deliver the government’s growth priority we need to stay focused on competitive taxes, labor supply ‘work and productivity.’
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