The UK economy grew by 0.6% in the first quarter of this year, the Office for National Statistics (ONS) has reported. That is stronger growth than expected. The ONS says the recovery was driven by the services sector, and industry. In output terms, services grew by 0.7% on the quarter, with widespread growth across the sector. The production sector grew by 0.8%, while the construction sector fell by 0.9%. In expenditure terms, there were increases in the volume of net trade, household spending and government spending, partly offset by falls in gross capital formation. This rise in GDP means that the economy is no longer in a technical recession, after activity fell in the third and fourth quarters of last year. Growth in March alone was also stronger than expected. GDP rose by 0.4% in March, the ONS reports, beating City forecasts for 0.1% growth. The services sector had a good month, growing by 0.5% in March, while production output grew by 0.2%. Construction output fell by 0.4% in the month, though. February’s GDP data has been revised higher, too, to show growth of 0.2% (up from 0.1% first estimated). The chancellor of the exchequer, 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. “We’re growing this year and have the best outlook among European G7 countries over the next six years, with wages growing faster than inflation, energy prices falling and tax cuts worth £900 to the average worker hitting bank accounts.” The agenda • 12.30pm BST: European Central Bank to release accounts of its last monetary policy meeting • 3pm BST: University of Michigan’s survey of US consumer sentiment We’ll be tracking all the main events throughout the day ...
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