GDP bounced back by 0.3% in January 2023 after falling by 0.5% in December 2022, according to the latest estimates from the Office for National Statistics (ONS).

The services sector saw the most significant monthly growth, rising by 0.5% in January compared to a 0.8% drop in December. The ONS attributes this uptick largely to education, transport and storage, human health activities, the arts and entertainment.

Education increased by 2.5% in January after school attendance returned to normal levels. Meanwhile, entertainment and recreation rose by 3.4%, following significant 8.9% growth in sports and recreation activities.

Output in consumer-facing services also increased by 0.3% following a 1.2% contraction the month before.

However, other sectors saw output fall in January. The construction sector decreased by 1.7% in January, while production dropped by 0.3%. When looking at the last three months as a whole, the economy showed zero growth.

Commenting on these figures, Tim McKenzie, policy chair at the Federation of Small Businesses, said:

"While January's figures are a glimmer of hope, the flat growth over the previous three months means we're not out of the woods yet, with tough trading conditions persisting for many small firms."

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