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The United Kingdom's GDP increased 0.2 percent last month, according to the latest data from the Office for National Statistics, or ONS, avoiding a recession in line with economists' predictions.
The data suggests a trend of sluggish growth rather than an impending recession, and is consistent with business surveys that pointed to modest activity, reported Reuters news agency.
Output in the services sector, which makes up around 80 percent of the economy, increased 0.3 percent and was the main contributor to the slight economic growth, which has transpired despite contractions in manufacturing and construction sectors, said the ONS in a statement on Wednesday.
The monthly economic output data shows a recovery from the 0.3 percent contraction in March.
A technical recession is characterized by negative growth for two consecutive quarters. Looking at the broader picture, between January and March, the UK economy experienced a 0.1-percent expansion, said the ONS.
The ONS said public sector strikes have been an ongoing drag on the economy, and noted the health sector's monthly output had decreased by 0.9 percent.
Since December 2021 borrowing costs have consistently increased, reaching a current rate of 4.5 percent, as part of the effort to curb consumer price inflation, which presently stands at 8.7 percent, more than four times the Bank of England's 2-percent target.
In a response to the latest figures, Chancellor of the Exchequer Jeremy Hunt said inflation was the "number one challenge we face", reported the BBC.
The chancellor asserted that the UK has "no alternative" other than to raise interest rates in an effort to confront increasing prices.
He stated that the government would provide "unstinting support "to the Bank of England, enabling it "to do what it takes" in order to curb inflation.
Hunt said: "In the end there is no alternative to bringing down inflation, if we want to see consumers spending, if we want to see businesses investing, if we want to see long-term growth and prosperity.
"We have to do everything we can as a government, as a country, to support the Bank of England in their mission to squeeze inflation out of the system."
Yael Selfin, chief economist at accountant KPMG UK, stated there are still "major challenges" facing Britain's economy, noted The Times newspaper.
She noted that the Bank of England is likely to maintain its rate hiking cycle, subsequently increasing pressure on both households and businesses as they encounter higher borrowing costs.
Some economists warned a recession was still possible in the second half of the year, as the impact of higher interest rates had yet to be felt, reported The Daily Telegraph.
Ruth Gregory, deputy chief economist at Capital Economics, said in a note to clients "it is too soon to sound the all clear". She added: "We think interest rates need to rise further to quash inflation, from 4.5 percent now to a peak of 5.25 percent."