Call 020 7794 5757 - Email info@numerallp.com

Inflation takes its toll as UK economy contracts in March

The UK economy contracted by 0.1% in March as surging inflation took a toll on demand, according to the latest figures from the Office for National Statistics (ONS).

12 May 2022

The UK economy contracted by 0.1% in March as surging inflation took a toll on demand, according to the latest figures from the Office for National Statistics (ONS).

The monthly figure compares to no growth in February and 0.7% growth in January. The figure for the first quarter of 2022 showed growth of 0.8%, which was down from 1.3% in the previous three months.

The ONS data was released following the Bank of England's warning last week that a recession now looms large as a result of the cost-of-living crisis gathering pace.

Rain Newton-Smith, Chief Economist at the Confederation of British Industry (CBI), said: 'The economy barely kept its head above the water during a volatile start to the year, but times look set to get that bit tougher.

'Cost pressures and rising prices have tightened their grip, with both businesses and households feeling the pinch. The end result is a weaker economic outlook.

'It's clear that the most vulnerable households and energy-intensive businesses may need further support, so the government should keep this under review.'

Newsletter sign-up

Why not register to receive our Monthly Newswire?

Once a month we'll send you an email packed full of essential business news and handy tax tips to help save you money.

Sign-up today

Try a site search Tax return, dividends, pension, autumn statement...

Company details

020 7794 5757

Numera, 4th Floor Charles House, 108-110 Finchley Road, London NW3 5JJ

Numera is a trading name of Numera Partners LLP | Company Registration No. OC365787 | Place of Registration: England & Wales | Registered to carry on audit work in the UK by the Institute of Chartered Accountants in England and Wales.

About us

Numera is a newly established forward-thinking firm of chartered accountants, with over 25 years in experience of audit, accountancy, taxation and business advisory services.

We work with clients in a large variety of industries and sectors; from sole traders to multi-million pound turnover organisations. We aim to create and maintain a close relationship with our clients. By being so involved, we are able to identify opportunities for our clients as well as possible risks that our clients may be faced with.

© 2022 Numera. All rights reserved. We use cookies on this website, you can find more information about cookies here.