UK emerged from recession at start of year

The UK’s economy emerged from recession at the start of the year, official figures show.

The economy grew by a stronger-than-expected 0.6% between January and March, the Office for National Statistics (ONS) said.

The UK had fallen into recession last year after the economy contracted for two three-month periods in a row.

The chancellor said the economy was “returning to full health”, but Labour has called such views “delusional”.

On Thursday, the governor of the Bank of England, Andrew Bailey, told the BBC that the economy had turned a corner, but that it was not yet a strong recovery.

Liz McKeown, director of economic statistics at the ONS, said the economy had seen “broad-based strength across the service industries with retail, public transport and haulage, and health all performing well.

“Car manufacturers also had a good quarter. These were only a little offset by another weak quarter for construction,” she added.

While the economy contracted during the second half of last year, the recession was the mildest in recent records.

The first quarter of this year saw the fastest growth for two years.

Yael  Selfin, chief economist at KPMG UK. said the latest figures suggested that “the worst is behind the UK economy”.

“We expect to see continued growth for the rest of this year, supported by a more favourable economic backdrop,” she said.

“Falling inflation and real pay increases should help to repair some of the damage to household incomes and support households’ consumption.”

The Chancellor, Jeremy Hunt, said: “There is no doubt it has been a difficult few years, but today’s growth figures are proof that the economy is returning to full health for the first time since the pandemic.”

Labour’s shadow chancellor, Rachel Reeves, said this was “no time for Conservative ministers to be doing a victory lap”, and “after 14 years of economic chaos, working people are still worse off”. Liberal Democrat Treasury spokesperson Sarah Olney said the figures were little cause for celebration.