The UK economy contracted by 0.3% in March after no growth in February, according to the Office for National Statistics (ONS).
The drop in GDP was partly driven by widespread decreases across the services sector and strike action in health and education.
Output fell in several sectors, including information and communication, transportation and storage, and administrative and support activities.
Retail and trade businesses saw the steepest decline in output, with wet weather affecting footfall on the high street and the cost of living crisis impacting consumer spending.
Looking at the bigger picture, the economy grew by 0.1% over the first three months of 2023. The construction sector grew by 0.7% in Q1 of 2023, while output in the manufacturing industry rose by 0.5%.
Despite this slight growth, the ONS says that GDP is still weaker compared to pre-pandemic levels.
Furthermore, while the UK economy grew faster than Germany's, many other major economies outperformed the UK, including Canada (0.6%) and Italy (0.3%).
Commenting on the ONS's figures, Chancellor 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."
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