The UK economy has demonstrated a more robust growth in the first quarter of 2024 than previously reported.
- The Office for National Statistics (ONS) revised the GDP growth rate to 0.7% from an initial estimate of 0.6%.
- The national economy exited a technical recession with the most rapid development observed in two years.
- Service sectors contributed significantly with an increase of 0.8%, while production grew by 0.6%.
- Conversely, the construction sector faced a decline of 0.6% during the same period.
The Office for National Statistics (ONS) has updated its figures on the UK economy, indicating a revised GDP growth of 0.7% for the first quarter of 2024, surpassing the initial estimate of 0.6%. This revision highlights a more vigorous recovery from the technical recession the country experienced at the end of the previous year, a time marked by declining GDP over two successive quarters.
This period marked the fastest economic growth for the UK in two years, reflecting a gradual but notable recovery trajectory following the recent recession. The ONS’s revision underscores the positive economic momentum that emerged in early 2024, even as specific sectors faced challenges.
The service industry emerged as a key driver of this growth, registering a 0.8% increase, indicative of its resilience and capacity to adapt in changing economic conditions. Meanwhile, the production sector also contributed positively to the GDP with a 0.6% rise.
On the other hand, the construction sector encountered a setback, reporting a 0.6% reduction in output. This decline reflects broader challenges within the sector, potentially influenced by external factors such as unpredictable weather conditions during the early months of the year.
Despite the overall positive trends, the retail sector did not witness a similar rebound in April 2024, continuing to grapple with adverse impacts from one of the wettest starts to the year on record, which affected consumer spending patterns.
The UK’s economic growth has exceeded expectations, indicating a positive shift in its post-recession recovery path.
