You are here: Home - Saving-Banking - News -

UK economy rebounds in January to report 0.3% growth

Written by:
The UK economy was estimated to have grown 0.3% in January 2023, spurred on by education, sporting events and the return of postal deliveries following strike action in December.

Gross domestic product (GDP) measures the value of goods and services produced in the UK. It estimates the size of, and growth in the economy.

The rebound follows a 0.5% fall in December 2022, the Office for National Statistics (ONS) revealed.

It said the largest contributors to growth came from education, transport, human health activities, as well as arts, entertainment and recreation activities.

The ONS noted that education grew 2.5% as school attendance levels returned to normal after a significant drop in December.

Meanwhile, there was a 6.4% increase in postal and courier activities, following a 10.4% slump in December due to the impact of postal strikes.

Elsewhere, arts, entertainment and recreation grew by 3.4% in January 2023, helped by the return of a full schedule for Premier League football after fixtures were postponed in December 2022 for the FIFA World Cup.

But on the flip side, production output fell 0.3%, construction fell 1.7% and real estate activities declined 0.1%.

Overall, the broader picture of GDP over the quarter remained flat.

Recession fears still real

According to Ruth Gregory, deputy chief UK economist at Capital Economics, the 0.3% rise in real GDP in January raises hopes that the economy will escape a recession in 2023.

It will also increase calls for the Chancellor to “splash the cash” in his Spring Budget next Wednesday.

“But the rise in GDP is not as good as it seems so we doubt it will give the Chancellor much wiggle room. And with the full drag from high interest rates yet to be felt, our hunch is still that the economy will enter a recession later this year,” Gregory said.

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Everything you wanted to know about ISAs…but were afraid to ask

The new tax year is less than a fortnight away and for ISA savers or investors, it’s hugely important. If yo...

Your right to a refund if travel is affected by train strikes

There have been a wave of train strikes in the past six months, and for anyone travelling today Friday 3 Febru...

Could you save money with a social broadband tariff?

Two-thirds of low-income households are unaware they could be saving on broadband, according to Uswitch.

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

DIY investors: 10 common mistakes to avoid

For those without the help and experience of an adviser, here are 10 common DIY investor mistakes to avoid.

Mortgage down-valuations: Tips to avoid pulling out of a house sale

Down-valuations are on the rise. So, what does it mean for home buyers, and what can you do?

Five tips for surviving a bear market mauling

The S&P 500 has slipped into bear market territory and for UK investors, the FTSE 250 is also on the edge. Her...

Money Tips of the Week