The UK economy marginally grew over the first quarter of the year, according to official data, further easing concerns that the UK could soon enter a recession.
UK gross domestic product (GDP) increased by 0.1per cent between January and March, the Office for National Statistics (ONS) revealed.
But it came after a 0.3per cent decrease in March, driven by falls for the retail and wholesale sector while the healthcare sector was also impacted by strike action.
The official economic data for Northern Ireland's first quarter performance won't be published until the end of June.
The last report from the Northern Ireland Statistics and Research Agency (Nisra) on March 30 showed the north's economy emerged from a technical recession in the final quarter of 2022 with growth of 1.4 per cent.
Analysis published by PwC this week estimated the Northern Ireland economy grew by 0.6 per cent in the three months to February, a higher rate of growth than any other UK region.
GDP fell 0.3per cent in March 2023 but grew 0.1per cent across Quarter 1 (Jan to Mar) 2023 as a whole.
➡️ https://t.co/iYul07EYRr pic.twitter.com/c2PFJdcPhB
— Office for National Statistics (ONS) (@ONS) May 12, 2023
Economists had predicted flat growth in the wider UK economy in March and the 0.1per cent increase for the first quarter of 2023.
The ONS said growth during the whole quarter was impacted by industrial action.
The decline in March came after a flat performance in February and 0.5 per cent rise in January.
Chancellor of the Exchequer Jeremy Hunt said: "It's good news that the economy is growing but to reach the Government's growth priority we need to stay focused on competitive taxes, labour supply and productivity.
"The Bank of England Governor confirmed yesterday that the Budget has made an important start but we will keep going until the job is done and we have the high wage, high growth economy we need."
READ MORE: PwC outlook points to Northern Ireland economy being 'on turn for the better'
Economy: North's services sector hit record levels in final months of 2022
ONS director of economic statistics Darren Morgan said: "Despite the UK economy contracting in March, GDP grew a little over the first quarter as a whole.
"The fall in March was driven by widespread decreases across the services sector.
"Despite the launch of new number plates, cars sales were low by historic standards - continuing the trend seen since the start of the pandemic - with warehousing, distribution and retail also having a poor month."
Output in consumer facing services, such as retail, dropped by 0.8 per cent in March compared to the same month last year.
Consumer spending has continued to come under pressure from significant rises in the cost of living over the past year, with inflation most recently reported at 10.1 per cent in March.
The ONS also highlighted a knock to monthly GDP from the motor vehicle trade, IT and communication and the transport sector, which has faced further disruption from industrial action.
The latest figures came a day after the Bank of England said it no longer predicts the UK will enter a recession this year after upgrading its economic growth projections.
A technical recession is when the economy contracts for two consecutive quarters.
READ MORE: Interest rates rise 'a fresh headache not just for households but for business'
In February, the central bank's Monetary Policy Committee believed the economy could fall into a shallow recession starting from the first three months of the year.
On Thursday, it said it expects GDP to rise by 0.25 per cent this year before a 0.75 per cent increase next year and the year after.
It came as the Bank also increased interest rates from 4.25 per cent to 4.5 per cent - the highest level since 2008.
