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The growth of wholesale and retail trade helped improve the economy
Gross domestic product grew 0.2% on the month – driven by a rebound in the retail and homebuilding sectors – after falling 0.1% in December, in line with expectations of economists in a Reuters poll.
Liz McKeown, director of the Office for National Statistics, said: “The economy rebounded in January with strong growth in retail and wholesale trade.” “The construction sector also performed well, with home builders having a good month after weakness for most of last year.”
The UK economy has been somewhat sluggish since its initial recovery from the Covid-19 pandemic, affected by the rising cost of energy imports due to the Russian invasion of Ukraine, and more recently higher bank interest rates from England.
But with inflation reaching 4% in January, below double-digit rates for most of last year, and expected to return to the 2% target soon, the pressure on household spending is easing and the central bank is beginning to consider when the time is right to cut interest rates. .
Emily Brontë is a journalist and feature writer specialising in culture, entertainment, literature, and current affairs. She is dedicated to producing clear, accurate reporting that helps readers stay informed about developments in the UK and around the world.
