Encouraging that economy expanded a little going into the New Year

Commenting on ONS data that showed monthly GDP grew by 0.3% in January 2023, and quarter-on-quarter growth remained flat, Kitty Ussher, Chief Economist at the Institute of Directors, said:

“It is encouraging that the economy expanded a little as we entered the New Year, following a contraction in December. The data has been helped by a resumption of business-as-usual in the education and postal sectors, and a return to the full Premier League schedule following the end of the World Cup. It is also encouraging that the retail sector demonstrated growth, albeit slight, given pressures on household budgets.

“While a flat economy overall is not usually grounds for celebration, the fact that these results are more positive than was expected at the time of the Chancellor’s Autumn Statement in November gives him more room for manoeuvre in next week’s Budget. The priority now is to use that flexibility to help put Britain on a sustainable growth path for the rest of the year and beyond.”