UK economy stages modest rebound in April

The UK economy returned to modest growth in April on strong consumer spending, official data showed Wednesday, stoking hopes it will avoid recession despite high inflation and rising interest rates.

Gross domestic product increased by 0.2 per cent in April following a fall of 0.3 per cent in March, the Office for National Statistics said in a statement.

Activity was boosted by consumer expenditure on shopping and hospitality, while the reading was in line with market expectations.

“GDP bounced back after a weak March,” said ONS director of economic statistics Darren Morgan.

“Bars and pubs had a comparatively strong April, while car sales rebounded and education partially recovered from the effect of the previous month’s strikes.”

The British economy was 0.3 per cent larger than its pre-pandemic level.

Finance minister Jeremy Hunt welcomed the upbeat data but cautioned over the outlook.

“We are growing the economy,” Hunt said in response.

“But high growth needs low inflation,” he added.

UK annual inflation slowed to a 13-month low in April, but remains elevated at 8.7 per cent as soaring food prices offset weaker energy costs. Official data for May is due next week.

The Bank of England last month lifted its key interest rate to 4.50 per cent, its 12th increase in a row, and is widely expected to hike again next week in a bid to tame stubbornly high consumer prices.