Monthly real gross domestic product (GDP) is estimated to have grown by 0.2% in April 2023.
Following a 0.3% drop in March, UK GDP has bounced back with an increase of 0.2%, according to new figures from the Office of National Statistics (ONS).
According to the data, the services sector was the main contributor to the growth, expanding by 0.3%, which analysts attribute to reduced industrial strike action.
Meanwhile, production output fell by 0.3% and the construction sector shrank by 0.6% in April 2023, following growth by 0.7% and 0.2% respectively in March 2023.
Looking at the broader picture, the figures show GDP grew by 0.1% in the three months to April 2023.
Mike Randall (pictured), CEO of Simply Asset Finance commented: “As UK GDP creeps upwards, we are now moving in the right direction, but the economy is still lagging behind industry expectations. While it was welcome to see the inflation figures move downwards, high interest rates, rising costs and energy bills are continuing to hinder business productivity.
“We know business owners remain optimistic and continue to trade through the ups and downs, but it’s critical we ensure that SMEs are receiving the funding they need to thrive in this challenging environment. With the small business community representing approximately 99% of the business population in the UK, their success is intrinsically tied to our economy’s growth.”
Neil Rudge, Head of Enterprise at Shawbrook said: “Although the UK has managed to avoid a recession once again, we are seeing only modest growth. This is mainly due to core inflation staying stubbornly high and the job market becoming more competitive. Unfortunately, the OECD ranks Britain second to last among the G7 countries in terms of expected growth, with only Germany, which entered a recession earlier this year, expected to perform worse.
“The current economic climate can be disheartening for businesses, but there are some positive signs emerging. The British Chamber of Commerce has upgraded its forecast after seeing an increase in business investment and a rebound in business confidence earlier this year. Alongside falling energy prices and easing inflation, this paints a brighter picture for business recovery. SME owners are a remarkably adaptable and resilient group, and for those that can act with agility and think creatively there is plenty of opportunity to grow.”