UK economy has bounced back from March’s contraction, helped by consumer spending, but production and construction shrank in April
- UK economy returns to growth as spending in pubs lifts output
- UK borrowing costs soar above levels of Liz Truss premiership
April’s 0.2% growth means the UK economy made a positive start to the second quarter of 2023, having grown by just 0.1% in the first quarter (and shrinking in March).
Jeremy Batstone-Carr, European strategist at Raymond James Investment Services, fears that “a Herculean effort” will still be needed to avoid a recession.
“Today’s GDP growth of 0.2% proves that the UK economy opened the latest quarter more strongly than the previous quarter, boosting the possibility that economic activity will be resilient enough to help the UK sidestep a recession.
However, it is far too soon to call the ‘all clear’, particularly with the Bank of England poised to remain on its rate-hiking mission to suppress inflation that remains too high for comfort.”
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