Wednesday, May 29, 2024

UK economy sees slight growth

UK GDP (gross domestic product), a key measure of economy growth, rose minimally, by 0.1%, in February, following a revised 0.3% rise in January (up from 0.2% previously).

It comes as the UK tries to clamber out of recession.

The increase was driven by strong growth in production sector output, up 1.1% month-on-month (following a fall of 0.3% in January), with a smaller contribution from the services sector, growing 0.1% month-on-month (following growth of 0.3% in January 2024). Construction output, however, fell 1.9% month-on-month, following a growth of 1.1% in January 2024.

Ben Jones, CBI Lead Economist, said: “With the damp and dismal weather hitting retail and other sectors, it’s not surprising to see activity was broadly flat in February. But lower inflation is easing pressure on household incomes and spending, and the economy still seems to be on course to exit its mild recession in the first quarter.

“While growth was probably fairly modest over the first quarter, the outlook is improving with our business surveys showing growth expectations for the second quarter at their strongest for almost two years.

“But we need to get some momentum going in economy without undoing hard work to bring down inflation. In this General Election year, it’s crucial parties of all stripes focus on structural challenges facing economy – like poor productivity and labour market pressure.

“What firms across all regions, nations and sectors tell us they need to drive sustainable growth, is stability and a long-term economic vision – which in turn will deliver prosperity to businesses and households alike.”

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