THE UK economy rebounded in January following the Omicron wave of coronavirus.
Official figures show the that gross domestic product (GDP) grew by 0.8% in January.
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The spread of Omicron over the festive period meant there was a contraction in December of 0.2% – but that was less severe than experts expected.
The Office for National Statistics (ONS) measures gross domestic product monthly and it shows if the economy is growing or not.
Economic growth took a hit during the coronavirus pandemic but has steadily recovered after lockdowns were lifted.
Experts had predicted a 0.1% rise in GDP in January, according to a consensus supplied by Pantheon Macroeconomics.
Darren Morgan, ONS director of economic statistics, said: “GDP bounced back from the hit it took in December due to the Omicron wave and is now 0.8% above its pre-pandemic peak.
“All sectors grew in January with some industries that were hit particularly hard in December now performing well, including wholesaling, retailing, restaurants and takeaways.
“Computer programming and film and television production also had a good start to the year.
“While supply chain issues persisted in certain sectors, output in both construction and manufacturing grew for the third month running.”
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But the recovery comes as millions face a cost of living crisis and the figures cover the period before the Russian invasion of Ukraine.
Inflation hit a 30-year-high in January, hitting 5.5%, and experts expect it to reach as high as 8% this year.
Millions of Brits face higher bills from April, including energy, broadband, water and council tax putting pressure on people’s finances.
Antonia Medlicott, finance editor at the financial comparison website, InvestingReviews.co.uk said: “The UK economy faces unprecedented challenges during 2022 and January was simply the calm before the storm.”
“The Omicron variant may have passed, but it has been replaced by soaring inflation, rising interest rates and raw material costs, skyrocketing energy and fuel bills and looming tax rises.”
The Russia Ukraine crisis has pushed up global wholesale gas and oil prices, which could hit consumers’ pockets further.
Petrol prices soared past 150p per litre hitting record highs and adding more to the cost of filling up at the pumps for drivers.
Energy bills will rise next month for millions of households on price-capped standard variable tariffs, rising by nearly £700 on average to £1,971, reflecting a rise in wholesale costs prior to the war.
Energy bills could hit £3,000 a year in October, when the energy cap is next reviewed.
Chancellor Rishi Sunak said: “We have provided unprecedented support throughout the pandemic which has put our economy in a strong position to deal with current cost-of-living challenges.
“We are continuing to help people where we can, including through over £20 billion of support this financial year and next.
“We know that Russia’s invasion of Ukraine is creating significant economic uncertainty and we will continue to monitor its impact on the UK, but it is vital that we stand with the people of Ukraine to uphold our shared values of freedom and democracy, and ensure Putin fails.”
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