The UK economy is climbing again - but the road ahead looks rocky

Figures may seem positive at first glance but the broader picture for UK plc is still one of relative stagnation

• Hopes of UK exit from recession boosted as GDP rises
• UK’s weak economy is taking a toll on its labour market

Britain’s economy is on the road to recovery. After a dismal end to last year as soaring living costs forced households to cut back their spending, official figures show growth returned in January, with a modest 0.2% increase.

The early signals show that the UK is on track to emerge from a minor recession within months, powered by a recovery in consumer spending amid resilient pay growth and receding inflation. But that isn’t to say the economy is racing ahead, or that a renaissance in living standards awaits.