Return to school unexpectedly boosts UK economy in January

  10 March 2023    Read: 936
Return to school unexpectedly boosts UK economy in January

Children returning to school after an illness-ravaged December provided an unexpected, one-off boost to Britain's economy in January, when growth in output exceeded forecasts, data showed on Friday.

The Office for National Statistics (ONS) said Britain's economy expanded 0.3% month-on-month, after a drop of 0.5% in December - a reading that is likely to further allay recession fears.

A Reuters poll of economists had pointed to growth of 0.1%.

The pound rose against the dollar and euro on the back of the figures, which showed growth was powered entirely by services - much of it due to the one-off bounce in the education sector.

The manufacturing and construction sectors contracted.

"Looking beneath the surface, the figures suggest the economy is on weaker ground than it appears," Ruth Gregory, deputy chief UK economist at consultancy Capital Economics.

 


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