UK economy staged modest recovery in January

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Return of Premier League football after World Cup helped boost services, says statistics agency via IrishTimesBiz

Fans arrive outside the stadium prior to the Premier League match between Arsenal FC and AFC Bournemouth. The UK's Office for National Statistics said the return of Premier League match days helped lift the UK economy in January. Photograph: Julian Finney/Getty ImagesThe UK economy grew by 0.3 per cent in January after a rebound in the services sector.

Darren Morgan, an ONS director of economic statistics, said: “The main drivers of January’s growth were the return of children to classrooms, following unusually high absences in the run-up to Christmas, the Premier League clubs returned to a full schedule after the end of the World Cup and private health providers also had a strong month. Postal services also partially recovered from the effects of December’s strikes.

“We expect the current downturn to be shallower and shorter than previously thought, with stronger business sentiment and a steady fall in inflation expected to support the recovery in the second half of the year,” said KPMG UK’s Chief Economist Yael Selfin. Growth in January was driven by the services sector, which expanded 0.5 per cent. Consumer-facing services rebounded from the strike affected December. Construction shrank 1.7 per cent and manufacturing fell 0.4 per cent in the month.

 

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