The GDP figures published by the Office for National Statistics (ONS) on Friday revealed that the UK economy experienced its fastest growth since 2021, officially emerging from a technical recession. The economy grew by 0.7% in the first quarter, with an upward revision from the initial estimate of 0.6%.
In terms of output, the services sector, which includes businesses like hairdressers, banks, and hospitality, grew by 0.8%, showing widespread growth across the industry. The production sector also saw growth of 0.6%, while the construction sector experienced a decline of 0.6%.
Economic growth has become a central issue in the upcoming election, as the UK navigates its recovery from the impacts of COVID-19. The data showed that the UK outperformed other G7 nations in terms of growth in the last quarter.
On a more personal level, household saving ratios increased compared to the previous quarter, driven by higher wages and salaries as well as adjustments to pension entitlements. In addition, the ONS reported that real households’ disposable income grew by 0.7% in the first quarter of 2024, maintaining the same growth rate as the previous quarter.
The report also confirmed that the economy contracted in the second half of the previous year, entering a technical recession with a 0.1% decline in the third quarter and a 0.3% contraction in the final three months of the year. This latest data is a positive sign for the UK economy as it continues to recover from the challenges of the past few years.