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| UK growth confirms recession avoided in 2022 | |
| (about 1 hour later) | |
| The UK economy performed better than previously estimated at the end of last year, revised official figures show. | The UK economy performed better than previously estimated at the end of last year, revised official figures show. |
| It was previously thought the economy had not grown in the last three months of 2022, but new Office for National Statistics data shows it grew by 0.1%. | It was previously thought the economy had not grown in the last three months of 2022, but new Office for National Statistics data shows it grew by 0.1%. |
| The latest figures confirm that the UK economy avoided falling into recession at the end of 2022. | The latest figures confirm that the UK economy avoided falling into recession at the end of 2022. |
| The ONS said telecommunications, construction and manufacturing had all fared better than initially thought. | The ONS said telecommunications, construction and manufacturing had all fared better than initially thought. |
| It also said household finances had been helped by the government's energy bill support scheme. | It also said household finances had been helped by the government's energy bill support scheme. |
| The main driver of the economy in the UK - the services sector - was boosted by a sizeable jump for travel agents. | |
| Manufacturing growth was driven by the drugs industry, and construction growth was up much more than previously thought. | |
| The ONS also revised up its estimate for the economy's performance in the July-to-September quarter. It now says GDP - the value of the goods and services the country produces - fell by 0.1%, compared with its previous estimate of a 0.2% fall. | The ONS also revised up its estimate for the economy's performance in the July-to-September quarter. It now says GDP - the value of the goods and services the country produces - fell by 0.1%, compared with its previous estimate of a 0.2% fall. |
| Chancellor Jeremy Hunt tweeted the figures "show there's underlying resilience in the UK economy". | |
| However, he added that "families are still facing real pressure". | |
| A recession is usually defined as when the economy contracts for two three-month periods in a row, so the growth at the end of 2022 means the UK avoided one. | A recession is usually defined as when the economy contracts for two three-month periods in a row, so the growth at the end of 2022 means the UK avoided one. |
| Last week, the Bank of England said that the economy was expected to grow only slightly in the coming months. | Last week, the Bank of England said that the economy was expected to grow only slightly in the coming months. |
| However, Bank governor Andrew Bailey said he was "much more hopeful" for the economy, and it was no longer heading into an immediate recession. | However, Bank governor Andrew Bailey said he was "much more hopeful" for the economy, and it was no longer heading into an immediate recession. |
| Mr Bailey's comments came after the Bank increased interest rates to 4.25% from 4%. | Mr Bailey's comments came after the Bank increased interest rates to 4.25% from 4%. |
| Interest rates have been repeatedly hiked as the Bank attempts to get the soaring pace of price rises under control. | Interest rates have been repeatedly hiked as the Bank attempts to get the soaring pace of price rises under control. |
| Inflation, which is the rate at which prices rise, remains close to its highest level for 40 years, and hit 10.4% in the year to February. | |
| Ruth Gregory of Capital Economics said the revised ONS figures showed that high inflation took a slightly smaller toll on the economy than thought. | |
| However, she said most of the impact of higher rates was yet to be felt. | |
| "We still think the economy will slip into a recession this year," she said. | |
| Separately, house prices slid in March at the fastest annual rate since 2009, mortgage lender Nationwide said. | |
| Related Topics | Related Topics |
| GDP | GDP |
| Economic growth | Economic growth |
| UK economy | UK economy |
| Office for National Statistics | Office for National Statistics |