UK Economy Shows Promising Signs of Recovery in Q1, Boosted by Service Industries and Car Manufacturing”.

The UK economy has shown a positive growth of 0.6 per cent in the first quarter of 2023, according to the Office for National Statistics. This growth was faster than expected, as economists had predicted a 0.4 per cent improvement. After two consecutive quarters of decline, this positive growth has technically lifted the country out of recession in the latter half of 2023.

Chancellor Jeremy Hunt responded to the GDP figures by stating that the economy is showing signs of returning to full health for the first time since the pandemic hit. He highlighted several factors contributing to this positive outlook, including faster wage growth compared to inflation, falling energy prices, and tax cuts benefitting the average worker by £900.

Liz McKeown, director of economic statistics at ONS, noted that the positive growth in Q1 was driven by strong performance in service industries such as retail, public transport, haulage and health sectors. However, there was some offset from a weak performance in construction industry. Car manufacturers also had a good quarter, contributing significantly to overall growth.

Overall, this promising sign suggests that the UK economy may be on a path to recovery after facing challenges over the past few years.