UK economy rebounds with stronger-than-expected January GDP print

LONDON — The U.K. system grew by 0.3% successful January, authoritative figures showed connected Friday, exceeding expectations arsenic it continues to fend disconnected what economists spot arsenic an inevitable recession.

Economists polled by Reuters had projected a 0.1% monthly summation successful GDP. GDP was level implicit the 3 months to the extremity of January, the Office for National Statistics said.

"The services assemblage grew by 0.5% successful January 2023, aft falling by 0.8% successful December 2022, with the largest contributions to maturation successful January 2023 coming from education, transport and storage, quality wellness activities, and arts, amusement and recreation activities, each of which person rebounded aft falls successful December 2022," the ONS found.

Production output fell by 0.3% successful January aft increasing 0.3% successful December, portion the operation assemblage dropped 1.7% successful January aft flatlining the erstwhile month.

The U.K. system showed nary growth successful the last 4th of 2022 to narrowly debar a recession — commonly defined arsenic 2 quarters of antagonistic maturation — but shrunk by 0.5% successful December.

Both the Bank of England and the Office for Budget Responsibility person forecast a five-quarter recession opening successful the archetypal 4th of 2023, but the information has truthful acold exceeded expectations.

The U.K. remains the lone state successful the G-7 (Group of Seven) large economies that has yet to afloat retrieve its mislaid output during the Covid-19 pandemic. The ONS said Friday that monthly GDP is present estimated to beryllium 0.2% beneath its pre-pandemic levels.