The UK economy grew in January by 0.3 per cent according to figures released today, as the country manages to elude the forecast recession brought on by the pandemic and war in Europe.
Economists polled by Reuters had projected a 0.1% monthly increase in GDP. GDP was flat over the three months to the end of January, the Office for National Statistics said.
“The services sector grew by 0.5% in January 2023, after falling by 0.8% in December 2022, with the largest contributions to growth in January 2023 coming from education, transport and storage, human health activities, and arts, entertainment and recreation activities, all of which have rebounded after falls in December 2022,” the ONS found.
Production output fell by 0.3% in January after growing 0.3% in December, while the construction sector dropped 1.7% in January after flatlining the previous month.
Both the Bank of England and the Office for Budget Responsibility have forecast a five-quarter recession beginning in the first quarter of 2023, but the data has so far exceeded expectations.
“We’re likely to continue flirting with recession throughout much of 2023, as high inflation, tax rises and the lagged effect of rising interest rates shrinks consumer spending power, despite a boost from easing energy costs,” said Suren Thiru, economics director at the Institute of Chartered Accountants in England and Wales.
Devdiscourse tweeted: “Return to school unexpectedly boosts UK economy in January.”
Another tweet in response to this news read: “I think we have to spare a thought for remoaners today.”
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