UK exits recession

Click to read the article in full.  

The UK has moved out of recession, with new figures showing the economy grew by 0.6% in the first quarter of the year.

Strong economic growth in March (0.4%) contributed to the strongest quarterly growth since the fourth quarter of 2021, when the economy was still recovering from the COVID-19 pandemic.

This was influenced by growth across the services sector and manufacturing, while construction output fell.

GDP (gross domestic product), a key measure of economy growth, had been predicted to rise 0.1% month-on-month and 0.4% in the quarter.

Ben Jones, CBI Lead Economist, said: “Back-to-back increases in output over the first months of this year suggest the UK is now on the road to recovery. With falling inflation boosting households’ spending power, as well as opening the way for a reduction in interest rates in the months ahead, the economy should be able to sustain some momentum through the year.

“But a consumer-led recovery could prove short-lived without more determined action to tackle the long-standing problem of weak productivity growth, which ultimately sets the UK’s economic speed limit.

“Firms want to see action that could help support investment and cut costs which, includes extending full expensing to leased and rented assets,

 link source - East Midlands Business Link General

Continue reading this article at the original source Here