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- Economic deep dive: Q1 2023
Economic deep dive: Q1 2023
Your quarterly guide to the UK economy; making sense of the key trends and what's driving them.
12 May 2023, 1 min read
Quarterly highlights:
UK economy has held up better than expected even though growth prospects remain dim
GDP was flat in February following growth of 0.4% m/m in January. While the UK economy has avoided slipping into recession, CBI surveys suggest underlying momentum remains fairly weak.
CPI inflation continues to run in double digits, but is expected to fall steadily this year
Headline inflation eased to 10.1% in February. We still expect inflation to decline over 2023, as falling wholesale gas prices begin to feed through to lower household energy bills.
Labour market is still tight, but pay growth seems to have peaked
Employment continues to grow, while inactivity has eased slightly. Wage growth pressures remain firm in both the public and private sectors.