‘Green shoots of recovery’ are emerging in the economy despite a soggy month in the High Street
The ‘green shoots of recovery’ are appearing in the economy despite a rainy month in the High Street.
A report from S&P Global shows that British companies are growing at the fastest pace for a year.
The analysis group’s activity index in the private sector – where scores above 50 show growth – rose from 52.2 in March to 53.9 in April. It was the strongest reading since April last year.
‘Green shoots’: A report from S&P Global showed UK companies growing at the fastest pace for a year
Market research firm GfK also found that household confidence is at its highest since February last year, despite runaway inflation and rising interest rates.
JP Morgan expects the UK economy to grow 0.7 percent this year, stronger than forecast by the gloomy IMF and others.
GfK’s Joe Staton said: ‘The clearer vision of what the general economy has in store for us can be seen as the proverbial green shoots of recovery.’ However, the Office for National Statistics said retail sales fell 0.9 percent in March.
But experts attribute this in part to the sixth wettest March since records began in 1836. There was also a drop in food sales as prices rose. Figures this week showed food inflation at 19.1 percent — the biggest increase since 1977.
But Darren Morgan, director of economics at the ONS, said: “A strong performance from retailers in January and February means the three-month picture shows positive growth for the first time since August 2021.”
S&P Global’s Chris Williamson said the economy showed ‘encouraging resilience’