Skip to content
Search
AI Powered
Latest Stories

Return to school unexpectedly boosts UK economy in January

Return to school unexpectedly boosts UK economy in January
(Photo by Hollie Adams/Getty Images)
Getty Images

Children returning to school after an illness-ravaged December provided an unexpected, one-off boost to Britain's economy in January, when growth in output exceeded forecasts, data showed today (10).

The Office for National Statistics (ONS) said Britain's economy expanded 0.3% month-on-month, after a drop of 0.5 per cent in December - a reading that is likely to further allay recession fears, at least in the short term.


A Reuters poll of economists had pointed to growth of 0.1 per cent.

Britain economy had proved "more resilient than many expected, but there is a long way to go," said finance minister Jeremy Hunt, who presents his annual budget next week.

Hunt looks set to keep his grip on the public finances in Wednesday's budget, refraining from big tax cuts or spending increases until the next election comes closer into view.

The ONS said half of the 0.3% growth rate comprised the education sector, as a result of children returning to school after a significant drop in attendance in December.

The entertainment sector - helped by the men's soccer Premier League returning to action after the 2022 World Cup - was another fillip for the economy. In a sign of deeper problems for the economy, manufacturing and construction contracted.

"Looking beneath the surface, the figures suggest the economy is on weaker ground than it appears," Ruth Gregory, deputy chief UK economist at consultancy Capital Economics.

Martin Beck, chief economic advisor to the EY ITEM Club forecasting group, said widespread strikes in December and January likely explained why the economy remained below its level in November.

The ONS said economic output in January stood 0.2 per cent below its pre-pandemic level of February 2020 - in contrast to other advanced economies - and had shown zero growth over the last three months and the past year.

The government had previously reported high rates of flu and scarlet fever during December. Fear of contracting COVID-19 over Christmas may also have contributed to children being taken out of school early.

Education represents 6 per cent of Britain's economy and student numbers are the main way the ONS measures the quantity of output the sector provides.

More for you

‘Spooktacular’ store POS drives sales, customer engagement for Nisa retailer NP Group

‘Spooktacular’ store POS drives sales, customer engagement for Nisa retailer NP Group

As the final key retail season of the year approaches, Nisa retailer NP Group is gearing up for Christmas with a renewed focus on store activation and point-of-sale (POS) strategy to drive sales following a successful Halloween.

With seasonal shopping trends in full swing, effective in-store activation and visibility are crucial for smaller retailers to capture customer attention and keep up with larger competitors. Data from Retail Economics shows that UK shoppers spent approximately £10 billion on seasonal products in 2023, with Halloween contributing £650 million alone, marking a steady increase in seasonal shopping over recent years.

Keep ReadingShow less
Post Office cash deposits and withdrawals
Post Office, DPD partners to rollout ‘Click and Collect’ services
Post Office, DPD partners to rollout ‘Click and Collect’ services

Most Horizon scandal victims say it 'destroyed relationships'

Around two thirds (65 per cent) of people affected by the Horizon scandal have said it impacted their family and relationships, while many respondents report estrangement from family members because of the scandal, according to a paper published today (1) by the Post Office Horizon IT Inquiry’s listening project.

The paper title In Your Own Words illustrates the various challenges the Horizon scandal has inflicted on people’s relationships, with respondents reporting the breakdown of relationships, estrangement from family members, and acute loneliness. Some adult children of former sub-postmasters shared how they experienced bullying, financial issues and mental health struggles because of the scandal. Others reported how their parents have died before knowing the truth about the Horizon scandal, which magnified their grief.

Keep ReadingShow less
New benefits scheme for Fed members

New benefits scheme for Fed members

The Federation of Independent Retailers (The Fed) has launched an exclusive benefits scheme for Fed members.

Called FedPlus, the scheme offers a range of discounts on a host of goods and activities, from everyday purchases to luxury products.

Through FedPlus, Fed members will have access to a range of fantastic money-saving benefits covering a wide variety of areas – from health and well-being to home and car essentials, and from food and drink to fashion and tech, entertainment, travel and experiences.

There is a Savings Calculator to show how much has been saved, based on monthly or annual spending, on a range of everyday categories. The Savings Calculator will generate a personal savings total and provide links to the individual deals.

Launching FedPlus, National President Mo Razzaq said: “In my inaugural speech at the Fed’s Annual Conference in June, I spoke about the importance of providing more benefits to help members make money, save money and make business easier.

“Just four months on, we are delighted to bring you FedPlus. This is an exciting new addition to our ever-growing list of member benefits which brings you quick, at your fingertips access to several offers across a wide range of categories so the money in your wallets and purses goes even further in these financially strained times.”

Members can access the scheme through thefedonline.com website. It went live yesterday (October 31).

FedPlus is managed and run for the Fed by Parliament Hill Limited, which has been providing benefit management solutions for membership organisations for the past 20 years. Top name companies offering discounts include Virgin Experience Days, Nuffield Health, Hotpoint, Halfords, Boots, Curry’s and EE.

Tom Sparke, joint managing director and client services director at Parliament Hill, said: “We are looking forward to working with the Fed to assist them in the fantastic support that it provides for its members.

“The Fed has a strong commitment to supporting its members, which aligns with the Parliament Hill ethos of placing the needs of our clients’ members at the heart of what we do.”

Carlsberg Zero
Competition watchdog begins Carlsberg, Britvic merger probe
Competition watchdog begins Carlsberg, Britvic merger probe

Carlsberg shifts marketing focus as drinkers choose cheaper beer

Brewer Carlsberg is shifting some of its marketing focus to cheaper brands, it said on Thursday (31), as consumers in major markets bought cheaper beer and in reduced quantities.

The maker of Kronenbourg 1664, Tuborg and Somersby said beer sales volumes fell by 1.3 per cent in the third quarter, noting declines in China, France and the United Kingdom. Premium sales fell 0.5 per cent in the quarter."In Western Europe, there's no doubt that the average consumer is holding back," CEO Jacob Aarup-Andersen told Reuters.

Keep ReadingShow less
sustainability, zero waste store, refil lzone
Photo: iStock
Photo: iStock

Consumers value ethics though 'sustainability needs to be competitively priced'

Consumers now want a greater commitment from retailers in cutting food waste, refilling stations, sustainable packaging, and partnering with social purpose organisations, states a recent research, which also highlights that a good majority (69 per cent) of younger consumers are more likely to shop with what they see as socially responsible retailers though price sensitivity still plays a crucial role.

According to the findings, published in Vypr’s Consumer Horizon Report, reducing food waste is the most important factor for the majority of UK consumers (29 per cent), especially for Gen Z women aged 18-24 (38 per cent). More than a third (37 per cent) of men aged 18-24 said they needed food storage advice. A similar number of women aged 18-24 (33 per cent) want meal kits with the exact amount of ingredients included for them to cut down on food waste.

Keep ReadingShow less