UK economy took further steps along the road to recovery in April

THE UK economy recovered from the impact of strikes and returned to growth in April.

Official figures from the Office for National Statistics (ONS) registered a 0.2 per cent upturn owing to increased car sales and more spending in shops, bars and restaurants.

Growth over the first quarter increased by 0.1 per cent.

“Gross domestic product (GDP) bounced back after a weak March,” announced Darren Morgan, ONS’ director of Economic Statistics.

Bars and pubs had a comparatively strong April while car sales rebounded.  Education partially recovered from the effect of the previous month’s industrial action, he said, although health output was affected by the junior doctors’ strikes.

“There were also falls in computer manufacturing and the often-erratic pharmaceuticals industry,” Morgan added.

April was a poor month for house builders and estate agents, under pressure from rising interest rates and falling property values, the ONS report revealed.

The latest ONS figures coincided with the certainty that the Bank of England was about to hike interest rates for the 13th time in succession from its current 4.5 per cent.

Analysts explained that the regulator is concerned that core inflation, which does not cover energy and food, remains stubbornly high.

The UK’s Chancellor, Jeremy Hunt, said he backed the Bank over increased interest rates, and the country was in situation very different from last autumn’s.

“The International Monetary Fund, the international commentators, think that the British economy is on the right track and the government is doing the right thing to support the Bank of England.”