Green shoots of recovery sprout despite double-digit inflation

‘Green shoots of recovery’ emerging in economy despite rain-drenched month on High Street

The ‘green shoots of recovery’ are emerging in the economy despite a rain-drenched month on the High Street.

A report by S&P Global showed British businesses are growing at the fastest pace for a year.

The analytics group’s index of activity in the private sector – where scores above 50 show growth – rose to 53.9 in April from 52.2 in March. It was the strongest reading since April last year. 

‘Green shoots’: A report by S&P Global showed British businesses are growing at the fastest pace for a year

Market research firm GfK also found confidence among households is at its highest since February last year despite runaway inflation and rising interest rates. 

JP Morgan said it expects the UK economy to grow by 0.7 per cent this year – stronger than predicted by the gloomy IMF and others.

Joe Staton of GfK said: ‘The brighter views on what the general economy has in store for us could be seen as the proverbial green shoots of recovery.’ The Office for National Statistics, however, said retail sales fell 0.9 per cent in March. 

But experts put this down in part to the sixth-wettest March since records began in 1836. There was also a slide in food sales as prices soar. Figures this week showed food inflation is running at 19.1pc – the biggest increase since 1977.

But Darren Morgan, director of economics at the ONS, said: ‘A strong performance from retailers in January and February means the three-month picture shows positive growth for the first time since August 2021.’

Chris Williamson at S&P Global said the economy was ‘showing encouraging resilience’