The ONS said growth in the first quarter of 2023 was revised up to 0.3% from an earlier estimate of 0.1%, while its estimate for growth in the second quarter was unchanged at 0.2%. Growth was also faster than expected last year. GDP is now estimated to have increased by 4.3% in 2022, revised from a first estimate of 4.1%.
Momentum is, however, beginning to stall as the UK economy grapples with higher interest rates from the Bank of England and stubbornly high inflation weighing on businesses and households amid growing fears of a recession. Sandra Horsfield, of the investment bank Investec, said: “We see little in today’s numbers to derail our expectation of a more challenging growth picture ahead: we continue to forecast that the UK economy will enter a recession over the winter months.”, said: “We still think that higher interest rates will trigger a mild recession involving a 0.5% fall in GDP in the coming quarters.”