The UK economy has returned to growth after a boost in stronger spending in pubs, bars and shops. The UK's gross domestic product (GDP) increased by 0.2 percent in April after a 0.3 percent fall in March, the Office for National Statistics (ONS) has revealed.
Following the consequences of Russia’s invasion of Ukraine and its effect on energy prices, and the impacts of the Covid-19 pandemic, the UK entered into a recession in the first quarter of this year. As a result the IMF predicted around 90 percent of advanced economies will see a decline in growth in 2023.
However in April, the UK economy appeared to have bounced back after a recovery in consumer-facing services, which grew 1 percent for the month, as Brits are spending more on drinking, eating out and shopping.
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In response to the growth, the Chancellor of the Exchequer Jeremy Hunt said: "We are growing the economy, with the IMF saying that from 2025 we will grow faster than Germany, France and Italy.
“But high growth needs low inflation, so we must stick relentlessly to our plan to halve the rate this year to protect family budgets."
The statistics body said the overall services industry grew by 0.3 percent for the month, as it recovered from a 0.5 percent decline in March.
However, some of the positive impact of improved hospitality and retail spending was offset by industrial action affecting other sectors, such as healthcare.
ONS director of economic statistics Darren Morgan said: “GDP bounced back after a weak March.
“Bars and pubs had a comparatively strong April, while car sales rebounded and education partially recovered from the effect of the previous month’s strikes.”
Mr Morgan added: “These were partially offset by falls in health, which was affected by the junior doctors strikes, along with falls in computer manufacturing and the often-erratic pharmaceuticals industry.
“House-builders and estate agents also had a poor month.”
The weak performance from house-builders and estate agents comes after a backdrop of surging interest rates, which have lifted to a 14-year-high of 4.5 percent and are expected to keep rising.
The construction sector reported a 0.6 percent decline in output for the month.
Labour’s shadow chancellor Rachel Reeves said: “Despite our country’s huge potential and promise, today is another day in the dismal low-growth record book of this Conservative Government.
“The facts remain that families are feeling worse off, facing a soaring Tory mortgage penalty and we’re lagging behind on the global stage.”
