The UK economy registered a growth of 0.1% in the last quarter of 2022, avoiding recession and performing better than earlier estimates, according to data from the Office for National Statistics. The telecommunications, construction, and manufacturing sectors performed better than initially expected, and the government’s energy bill support scheme helped households tide over economic challenges. The services sector was the main driver of the economy, with travel agents and the drugs industry driving manufacturing growth. The Bank of England governor expressed hope regarding the economy, and the central bank increased interest rates to 4.25% from 4% to control rising costs. However, inflation is close to its highest level in 40 years, hitting 10.4% in February.
