The chances of the UK quickly emerging from recession have been boosted after the release of official figures showing the economy grew by 0.2% in January.
The Office for National Statistics said national output – as measured by gross domestic product (GDP) – had increased for only the second time in the past seven months.
Financial markets had been expecting a pick up in activity after December’s 0.1% contraction, with the consensus forecast among economists a 0.2% increase.
Although the UK remains in a shallow recession after output fell in the third and fourth quarters of 2023, the news of the slight rebound in growth will come as a relief to the government.
The chancellor, Jeremy Hunt, said in last week’s budget that the economy had turned the corner after a period in which action by the Bank of England designed to tackle high inflation led to slower growth.
In the final six months of 2023, the economy grew only once – by 0.2% in November. Every other month recorded a fall or stagnation in GDP.
This article was written by Larry Elliott Economics editor from The Guardian and was legally licensed through the DiveMarketplace by Industry Dive. Please direct all licensing questions to legal@industrydive.com.