Gross domestic product (GDP) increased by 0.1 per cent between January and March 2023, the Office for National Statistics (ONS) revealed. But it came after a 0.3 per cent decrease in March, driven by falls for the retail and wholesale sector while the healthcare sector was also impacted by strike action. Economists had predicted a flat reading for March and the 0.1 per cent increase for the quarter.

The decline in March came after a flat performance in February and 0.5 per cent rise in January, according to the ONS data. Director of economic statistics Darren Morgan said: “Despite the UK economy contracting in March, GDP grew a little over the first quarter as a whole. The fall in March was driven by widespread decreases across the services sector. Despite the launch of new number plates, cars sales were low by historical standards - continuing the trend seen since the start of the pandemic - with warehousing, distribution and retail also having a poor month.”

Positive GDP data eases recessionary worries but outlook remains murky