The UK economy exits recession with a 0.6% increase in GDP during the first quarter.

Official figures revealed on Friday that the U.K. economy has exited recession, with a 0.6% increase in gross domestic product in the first quarter, surpassing expectations.

Reuters surveyed economists and they predicted a 0.4% increase in growth for the past three months.

In the second half of 2023, the U.K. experienced a shallow recession due to persistent inflation negatively impacting the economy.

A technical recession is defined as two consecutive quarters of negative growth, despite the absence of an official definition.

In the first quarter, the U.K.'s production sector grew by 0.8%, while construction decreased by 0.9%. On a monthly basis, the economy expanded by 0.4% in March, after growing by 0.2% in February.

The Bank of England's Monetary Policy Committee on Thursday stated that indicators of persistent inflation "persist," and decided to maintain its main interest rate at 5.25%.

The central bank anticipates near-term inflation of around 2%, but predicts a slight increase later in the year due to the waning effects of a significant drop in energy prices.

This is a breaking news story and will be updated shortly.