Why It Matters
The small expansion has cemented the improved outlook for Britain’s economy. Late last year, there were fears of a recession, but since then, wholesale gas prices have fallen substantially, and the economy has fared better than expected. Instead of a recession through the winter, Britain has recorded two consecutive quarters of growth.
It offers some good news amid a deep cost-of-living crisis, as household budgets have been stretched by a year of inflation in or near the double digits. In March, the annual inflation rate was 10.1 percent.
Alongside falling energy prices, businesses and households have shown some resilience to the challenging economic circumstances. In particular, employers have held on to workers after previous hiring proved difficult, and they tried to find other ways to cut costs as their expenses rose.
But this data can bring only limited comfort. With just 0.1 percent growth, Britain’s economy is still sluggish and slightly smaller than it was…
This article was written by Eshe Nelson and originally published on www.nytimes.com