GDP, however, posted a 0.1% growth in Q1 2023
The UK’s monthly gross domestic product (GDP) is estimated to have fallen by 0.3% in March, after showing no growth in the previous month.
The Office for National Statistics (ONS), however, noted that GDP grew by 0.1% in the three months to March 2023.
The main contributor to the monthly drop in GDP was the services sector, which fell by 0.5% in March 2023. Output in consumer facing services also went down by 0.8% in March, after unrevised growth of 0.4% in February.
The latest GDP monthly statistics showed a 0.7% growth in production output, which was its strongest monthly growth since May 2021, following a fall of 0.1% in February.
The construction sector also grew by 0.2% in March after growth of 2.6% in the previous month.
GDP fell 0.3% in March 2023 but grew 0.1% across Quarter 1 (Jan to Mar) 2023 as a whole.
— Office for National Statistics (ONS) (@ONS) May 12, 2023
➡️ https://t.co/iYul07EYRr pic.twitter.com/c2PFJdcPhB
“Despite the UK economy contracting in March, GDP grew a little over the first quarter as a whole,” Darren Morgan, ONS director of economic statistics, commented.
“The fall in March was driven by widespread decreases across the services sector. Despite the launch of new number plates, cars sales were low by historic standards – continuing the trend seen since the start of the pandemic – with warehousing, distribution, and retail also having a poor month. These falls were partially offset by a strong month for manufacturing, as well as growth in gas production and distribution, and also in construction.
“Across the quarter as a whole, growth was driven by IT and construction, partially offset by falls in health, education, and public administration, with these sectors affected by strikes.”
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