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GDP Monthly Estimate: January 2023

UK GDP is estimated to have risen 0.3% in January

Monthly GDP index, January 2007 until November 2022, 2019 = 100. Source: ONS

  • GDP rose by an estimated 0.3% in January 2023, following a fall of 0.5% in December 2022. 
  • GDP was flat in the three months to January 2023. 
  • Services and consumer-facing services grew by 0.5% and 0.3% respectively in January. Production output decreased by 0.3%, while the construction sector fell by 1.7%.

Services (0.5%) 

Services grew by 0.5% in January 2023, following a fall of 0.8% in December 2022. Growth was driven by education (2.5%), as children returned to school following widespread absences caused by winter flu and COVID-19 in December, and Arts, entertainment and recreation (3.4%) due to the return of Premier League Football. 

Transport and storage services (1.6%), and human health and social work activities (0.7%) also saw growth. Real estate activities fell by 0.1%. 

Output in consumer-facing services grew by 0.3% in January 2023, following a fall of 1.2% in December 2022. The largest contributing industry was sports, amusement and recreation activities (8.9%), as Premier League football resumed a full schedule of fixtures. 

Growth was also seen in food and beverage services (1.1%), other personal services (2.6%) and retail trade, except of motor vehicles and motorcycles (0.5%). 

The largest negative contributor was wholesale and retail trade and repair of motor vehicles and motorcycles, which fell by 2.3%.

Production (-0.3%)

Production output fell by 0.3% in January 2023, after growth of 0.3% in December 2022. Manufacturing was the largest negative contributor, falling by 0.4% in the month. The main driver of growth was the manufacture of chemical and chemical products (2.2%). 

Mining and quarrying fell by 2.2%, Electricity, gas, steam and air conditioning supply grew by 0.5%, and Water supply and sewage grew by 0.6% in January 2023. 

Overall, production increased by 0.3% in the three months to January 2023, compared with the three months to August 2022, driven primarily by electricity, gas, steam and air conditioning supply, which grew by 2.2%. 

Construction (-1.7%)

Construction output fell 1.7% in January 2023, the weakest monthly growth since June 2022. A decrease in new work (-4.0%) was offset by an increase in repair and maintenance (2.0%), with five out of nine sectors seeing a decrease on the month.

GDP Sector Breakdown

Source: ONS

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