UK economy returns to growth in April
The UK economy returned to growth in April thanks to a rebound in the services sector, according to figures released on Wednesday by the Office for National Statistics.
Gross domestic product rose 0.2%, in line with expectations, following a 0.3% contraction in March.
The services sector was the main contributor, growing by 0.3% in April, having contracted by 0.5% the month before.
The data showed that production output fell 0.3% in April following growth of 0.7% in March, while the construction sector declined by 0.6% following 0.2% growth.
In the three months to April, the economy grew by just 0.1%.
Darren Morgan, director of economic statistics at the ONS, said: "GDP (gross domestic product) bounced back after a weak March.
"Bars and pubs had a comparatively strong April while car sales rebounded and education partially recovered from the effect of the previous month's strikes.
"These were partially offset by falls in health, which was affected by the junior doctors' strikes, along with falls in computer manufacturing and the often-erratic pharmaceuticals industry.
"Housebuilders and estate agents also had a poor month.
"Over the last three months as a whole the economy grew a little, driven largely by the construction industries.
"The services sector dragged growth downwards, partly due to the impact of public sector strikes."
Ruth Gregory, deputy chief UK economist at Capital Economics, said: "The overall sense is that the economy is still proving fairly resilient to the drag from high interest rates. This resilience will further increase hopes that a recession is no longer likely. We are not convinced.
"We estimate that by the end of Q2 2023 less than 40% of the drag will have been felt and that more than 60% lies ahead. And we think interest rates need to rise further to quash inflation, from 4.50% now to a peak of 5.25%. That’s why we still think a recession is on its way in the second half of this year."