The UK saw weak growth in the first three months of the year and shrank during March as the economy was affected by strike action.

The economy grew by 0.1% between January and March the Office for National Statistics (ONS) said.

The figure comes a day after the Bank of England said it was more optimistic about prospects for the UK and that the economy would avoid recession.

The Bank also increased interest rates to 4.5% from 4.25%.

The rate rise was part of the Bank's continued attempt to slow soaring price rises.

Darren Morgan, director of economic statistics at the ONS, said: "Across the quarter as a whole, growth was driven by IT and construction, partially offset by falls in health, education and public administration, with these sectors affected by strikes."

The ONS figures showed that while the economy grew slightly over the first three months of 2023, in March it contracted by 0.3%, with car sales and the retail sector having a bad month.

Mr Morgan told the BBC Radio 4 Today programme that car sales had been "relatively weak" for March, while retail sales had been hit by wet weather which put people off visiting the High Street.

"We also saw food store sales slip and retailers told us that the increased cost of living and rising food prices are continuing to affect consumer spending," he added.

The economy just about grew in the first quarter of this year, but at 0.1% that was by the barest possible margin. The fall in March, the latest month, is of some concern with the service sector going into reverse, and car sales disappointing.

Strikes and the weather are factors here, but there is no denying the sluggish pattern that has persisted for a year now, as energy prices have risen. It will be not much comfort that Germany is not growing at all. On a quarterly basis the UK economy has still not regained all the ground lost since the pandemic and Brexit.

The current second quarter could see a fall too given the extra bank holiday. But forecasters are looking for the second half of the year for growth to start climbing again.

After a massive energy shock and other crises, the avoidance of a recession exceeds expectations. As the Bank of England said yesterday, two thirds of the impact of rate rises to date are yet to hit households.

While the engine of growth in the economy is on, Britain is going to have to wait a little longer for take off.

Shadow chancellor Rachel Reeves said: "Despite our country's huge potential and promise, today is another day in the dismal low growth record book of this Conservative government."

David Bharier, head of research at the British Chambers of Commerce, said the figures highlighted the fragile nature of the UK economy and he expressed concern about how businesses will cope with further rate rises.

"The core issues affecting British businesses, such as unprecedented inflation, energy price shocks, and record tightness in the labour market, have not gone away," he said.

Source: bbc.com/news/business-65562888