British economy recovers slightly in April but strikes set to keep a lid on growth

economy

(Image courtesy: Time)

London: The British economy bounced back in April amid strong sales at bars and pubs as well as a rebound in car purchases, according to official figures.

The Office for National Statistics said Wednesday that the economy grew by 0.2 per cent during the month. The increase was in line with expectations but failed to fully recoup the 0.3 er cent contraction in March.

However, on a longer-term horizon, the British economy is barely growing, hobbled by higher interest rates as well as strike action across an array of sectors, including in health, education and transportation.

Samuel Tombs, chief UK economist at Pantheon Macroeconomics, said he expects second-quarter growth to be unchanged from the first as the strikes “rumble on.” He also predicted that the extra public holiday in May for King Charles III’s coronation to weigh on economic activity.

Further out, he expects lower energy prices for households to boost growth in the second half of the year.

“A slow but steady recovery should emerge in the second half of this year,” he said.

AP

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