UK GDP: economy grew by 0.3% in JanuaryNewsflash: The UK economy has returned to growth.
The Office for National Statistics reports that GDP grew by 0.3% during January, after shrinking by 0.5% in December.
That’s a faster recovery than expected after the economy stalled in the final quarter of 2022.
Analysts had expected modest growth of just 0.1% (see opening post), as strike action and the cost of living crisis prevented a recovery in consumer and business activity.
The latest GDP figure could give the chancellor, Jeremy Hunt, a slight boost before next week’s budget, when he will set out the government’s tax and spending policies.