GDP 0.1 in Q4 vs previous estimate 0.0
Q3 contraction smaller than initially thought at 0.1
UK economy remains 0.6 smaller than before pandemic
Dominant services sector 0.1, helped by travel agents
Business investment revised down sharply to show a fall

LONDON, March 31 Reuters Britain39;s economy avoided a recession as it grew in the final months of 2022, according to official data which showed a boost to households39; finances from state energy bill subsidies but falling investment by businesses.

With the economy still hobbled by high inflation and worries about a weak growth outlook, gross domestic product GDP increased by 0.1 between October and December after a preliminary estimate of no growth.

GDP in the third quarter was also revised to show a 0.1 contraction, a smaller fall than initially thought, the Office for National Statistics ONS said on Friday.

Two consecutive quarters of contraction would have represented a recession.

Despite the improvement, British economic output remained 0.6 below its level of late 2019, the only G7 economy not to have recovered from the COVID19 pandemic.

The latest release takes the UK a little further away from the recessionary danger zone although the report does not change the overall picture that the economy39;s performance was lacklustre over the second half of 2022 as the cost of living crisis hit hard, Investec economist Philip Shaw said.

The International Monetary Fund forecast in January that Britain would be…