Contrary to the Bank of England’s predictions, the British economy displayed a stronger performance in the first quarter of the year.
Data from the Office for National Statistics reveals that the real gross domestic product (GDP) increased by 0.1pc between January and March, aligning with economists’ general projection of 0.1pc growth. This exceeded the Bank of England’s forecast, which predicted no growth for this quarter.
However, on a month-to-month basis, the GDP experienced a decrease of 0.3pc in March, which was a more significant drop than the predicted steady growth.
The growth in the quarterly rate was primarily seen in January, with a rise in GDP by 0.5pc. February’s growth remained stagnant.
The data for March clearly demonstrates the consequences of consecutive public sector strikes.
The ONS’s director of economic statistics, Darren Morgan, stated that the overall quarter’s growth was propelled by the IT and construction sectors. However, this was somewhat counterbalanced by the decline in the health, education, and public administration sectors, which were notably affected by the strikes.
The Bank stated on Thursday that if it weren’t for the strikes, the GDP growth for the first quarter would have been 0.2pc.
