The UK economy grew by 0.3% in January after a rebound in the services sector.
Analysts had expected growth of only 0.1% month on month after a combination of industrial action and inflation weighed on the economy. It followed a 0.5% slump in GDP in December, according to the Office for National Statistics.
The latest figures are expected to give the chancellor, Jeremy Hunt, a slight boost before next week’s budget, when he will set out the government’s tax and spending policies.
Darren Morgan, an ONS director of economic statistics, said: “The main drivers of January’s growth were the return of children to classrooms, following unusually high absences in the run-up to Christmas, the Premier League clubs returned to a full schedule after the end of the World Cup and private health providers also had a strong month. Postal services also partially recovered from the effects of December’s strikes.
“These were somewhat offset by a notable drop in construction with a slowdown in infrastructure projects and housebuilding having another poor month, partly due to heavy rainfall.”
The UK economy narrowly avoided sliding into recession at the end last year, but the Bank of England has forecast a recession in the first half of this year, partly because of a jump in the central bank’s base rate to 4%.
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