UK economic system shrank 0.3% in March, ONS figures present

The UK economic system grew barely within the first three months of the 12 months, in accordance with official figures - however contracted in March.

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Growth of 0.1% was recorded by the Office of National Statistics (ONS) within the three months as much as March, the bottom quantity doable to nonetheless be classed as progress as IT and building sector exercise offset the impression of strikes.

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However, the economic system shrank 0.3% in March as retail and car sales fell sharply, and public sector strikes have been extra disruptive than February as NHS workers and academics took to picket traces.

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Contraction additionally got here because of a 0.5% fall in companies manufacturing. Distribution and retail additionally had a poor month as price of dwelling pressures hit customers.

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Economic analysis agency Pantheon Macro has identified the UK is falling under the G7 group of the world's largest economies.

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"The UK remains the only G7 country in which the main quarterly measure of GDP has not recovered to its pre-COVID peak yet; it still was 0.5% below its Q4 2019 level in Q1," the Pantheon Macro chief economist mentioned.

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"This chiefly reflects weakness in households' real spending, which was 2.3% below its Q4 2019 level. But at least the magnitude of the underperformance is not increasing relative to other countries in Europe, which have faced a similarly enormous energy price shock," Samuel Tombs mentioned.

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ONS publishes GDP knowledge each month, which stands for gross home product and measures the sum whole of the whole lot produced within the economic system.

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Higher financial progress brings elevated tax revenues and certain increased incomes and requirements of dwelling.

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As a part of his concentrate on financial progress, Prime Minister Rishi Sunak says rising the economic system will create better-paid jobs and alternatives throughout the nation.

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A 3-month interval, or quarter, of financial progress means the UK is on the trail to keep away from recession. But the expansion recorded is small.

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An economic system is technically in a recession after two quarters of detrimental financial progress, although the Bank of England now expects the UK will avoid recession this 12 months.

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Today's announcement adopted a flatlining economy in February and progress of 0.5% in January.

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In response to the figures, Chancellor Jeremy Hunt mentioned: "It's good news that the economy is growing but to reach the government's growth priority we need to stay focused on competitive taxes, labour supply and productivity.

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"The Bank of England governor confirmed yesterday that the finances has made an necessary begin however we are going to hold going till the job is completed and we've got the excessive wage, excessive progress economic system we'd like."

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Rachel Reeves MP, Labour's shadow chancellor of the Exchequer, responding to the latest GDP forecast today, said: "Labour needs to match the ambition of the British individuals - whereas the Tories would moderately proceed down a path of managed decline of low progress and excessive taxes.

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"Despite our country's huge potential and promise, today is another day in the dismal low growth record book of this Conservative government.

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"The info stay that households are feeling worse off and we're lagging behind on the worldwide stage.

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"Labour's mission to secure the highest sustained growth in the G7 will make families across every part of our country better off."

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