UK economy grew more than first thought at start of 2024, says ONS
Revised figures showed on Friday morning that UK gross domestic product (GDP) grew by 0.7% between January and March.
Your support helps us to tell the story
From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.
At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.
The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.
Your support makes all the difference.The UK economy’s recovery from recession was stronger than previously thought, according to updated data.
The Office for National Statistics (ONS) revealed in revised figures on Friday morning that UK gross domestic product (GDP) grew by 0.7% between January and March.
In May, the statistics body estimated that the economy had grown by 0.6% over the quarter.
This growth saw the UK economy rebound from a recession in the latter half of 2023, after the ONS previously confirmed two consecutive quarters of decline.
The economy shrank by 0.1% in the third quarter, and 0.3% in the fourth quarter.
The improvement in growth shown in the revised data was driven by the services sector, with slightly stronger activity in the professional services, transport and storage sectors.
It found the services industry expanded by 0.8% for the quarter, up from previous estimates of 0.6%.
Meanwhile, the production sector grew by 0.6% and construction declined by 0.6% for the period.
The quarterly growth was the strongest the UK has witnessed since the end of 2021.
It presents potentially positive news for the Prime Minister Rishi Sunak ahead of next week’s General Election, after previously pledging to grow the economy.
Mark Preskett, senior portfolio manager at Morningstar Wealth, said: “The upward revision to the UK’s Q1 GDP is encouraging and further evidence that the UK economy is recovering.
“The services upgrade – to 0.8% from 0.7% – backs what we have been seeing in inflation data.”
Nevertheless, the ONS revealed earlier this month that the economy then stagnated in April, with no growth for the month as consumer spending was affected by wet weather.
Economists still expect growth for the current quarter, however.
Thomas Pugh, economist at RSM UK, said: “All the data suggests that the economy is set to continue to rise in Q2.
“We then expect growth to accelerate in the second half of this year and into 2025 as sharply lower inflation, tax cuts and falling interest rates give households an income boost.”