UK economy recovering stronger than expected January GDP print

City workers in Paternoster Square, home of the London Stock Exchange, on Thursday, March 2, 2023, in London, England.

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LONDON – The United Kingdom’s economy grew 0.3% in January, beating expectations as economists continue to emerge from what economists say is an inevitable recession, official figures showed on Friday.

Economists polled by Reuters had forecast a 0.1% monthly increase in gross domestic product. Gross domestic product was flat in the three months to the end of January, the Office for National Statistics said.

“The services sector grew by 0.5% in January 2023, following a 0.8% decline in December 2023. The main contributors to growth in January 2023 were education, transportation and storage, human health and arts, recreation and leisure activities, all . 2022 rebounded after a decline in December,” he said. ONS was invented

Manufacturing output fell 0.3% in January after rising 0.3% in December, while the construction sector fell 1.7% in January after stagnating in the previous month.

Britain’s economy showed no growth to avoid recession in the final quarter of 2022 – usually defined as two quarters of negative growth – but shrank by 0.5% in December.

Both the Bank of England and the Office for Budget Responsibility have forecast a five-year recession from the first quarter of 2023, but the data has so far been higher than expected.

The UK is the only major G-7 (Group of Seven) economy that has yet to fully recover lost output during the Covid-19 pandemic. The ONS said on Friday that monthly GDP is now estimated to be 0.2% below its pre-pandemic levels.