The UK economy eked out 0.2 per cent growth in April as the Bank of England prepares to inflict more mortgage misery on Brits.
GDP clawed back ground from a 0.3 per cent fall in March, boosted by stronger consumer spending in shops, bars and restaurants.
However, the positive figure from the ONS will harden expectations that the BoE will hike interest rate rises next week, amid alarm at persistent inflation.
Jobs data yesterday showed wages going up faster than predicted, with markets responding to signs of a price spiral by assuming borrowing costs will go up.
Chancellor Jeremy Hunt suggested he supported action by the Bank this morning, saying the focus on bringing inflation down must be ‘relentless’.
‘We are growing the economy, with the IMF saying that from 2025 we will grow faster than Germany, France and Italy,’ he said.
‘But high growth needs low inflation, so we must stick relentlessly to our plan to halve the rate this year to protect family budgets.’
ONS director of economic statistics Darren Morgan said: ‘GDP bounced back after a weak March.
‘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.
‘These were partially offset by falls in health, which was affected by the junior doctors strikes, along with falls in computer manufacturing and the often-erratic pharmaceuticals industry.
‘House-builders and estate agents also had a poor month.’
Source: | This article originally belongs to Dailymail.co.uk
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