Despite the March decline, the UK GDP expands by 0.1% in the first quarter of 2023.

Despite an unforeseen steep 0.3% dip in output in March, the UK's GDP increased by 0.1% in the first quarter of 2023, according to data released on Friday by the ONS.

In the first 3 months of this year, most economists surveyed by Reuters predicted a 0.1% quarter-on-quarter increase; however, they anticipated growth to maintain constant in the final month of the quarter.

According to ONS statistician Darren Morgan, "The fall in March was driven by widespread decreases across the services sector."

"Car sales were low by historical standards despite the introduction of new number plates, continuing the trend seen since the start of the pandemic," he continued. "Warehousing, distribution, and retail also had a poor month."

According to the ONS, widespread strikes contributed to a further slowdown in economic activity in the first quarter.

On a monthly basis, Britain's GDP was 0.1% bigger than it was in February 2020, but it was still 0.5% weaker than it was in the fourth quarter of 2019, just before the coronavirus outbreak.

Having initially expected a decline of 0.5%, the Bank of England estimated on Thursday that Britain will expand by 0.25% in 2023, a moderate recovery but one that avoids a recession.

In addition to a highly tight labour market, a series of interest rate rises, and the impact of Brexit, Britain is battling with an inflation rate that reached 10% in March, which is twice the level in the US and higher than the eurozone's as well.

(Investing.com, reuters.com)