Boozing Brits help boost economy by 0.2% – despite strikers trying to hobble growth
BOOZING Brits have helped boost the economy by 0.2 per cent — despite strikers trying to hobble growth.
Spending in pubs, bars and restaurants helped push up April’s figure — while the junior doctors’ strikes were partly blamed for affecting output.
Retail, IT and motor service repair also performed well to give the economy a lift, despite hikes in mortgage rates and high inflation leaving people with less money to spend.
UK Hospitality boss Kate Nicholls said it was a “stark reminder” of the importance of her sector to the economy.
And Emma McClarkin, from the Beer and Pub Association, said: “As an industry, we consistently contribute to the economy and, despite a tough few years, have continued to support livelihoods.”
The UK economy had shrank by 0.3 per cent in March.
And in the three months to April the economy grew slightly by 0.1 per cent.
But the housing and construction sectors hit the buffers, affected by high interest rates and uncertainty among potential home buyers.
Manufacturing was also sluggish.
Darren Morgan, of the Office for National Statistics said: “Bars and pubs had a comparatively strong April, while car sales rebounded.
“These were partially offset by falls in health, affected by the junior doctors strikes.
“House builders and estate agents had a poor month.”
Wage growth was stronger than expected in the three months to April.
But mortgage rates could rise further — as high as 5.75 per cent — after yields in Government bonds, which affect mortgages, rose yesterday.
They reached levels above those seen in last year’s mini-Budget meltdown.