UK exits recession posting fastest GDP growth in two years Today, the ONS published figures showing that UK real gross domestic product (GDP) is estimated to have grown by 0.6% in the first quarter of 2024.
This follows falls of – 0.3% Q4 and – 0.1% Q3 of last year and means real GDP is estimated to have increased by 0.2% compared to the same quarter a year ago. The rate of quarterly growth is also the highest it has been since Q4 2021 when the country bounced back from lockdown.
Growth was stronger than expected with analysts predicting 0.4% before the GDP data was published.
Services grew by 0.7% in the quarter led by the transport and storage subsector as well as professional, scientific and technical activities.
Following a fall of 1.1% in Q4 2023, the production sector increased by 0.8%, led by manufacturing.
In contrast to the positive data in services and production, the construction sector remains challenging with output falling by 0.9% in Q1, following a similar decline of 0.9% in the previous quarter. The fall reflects a 1.8% decline in new work driven by a 5.3% fall in private commercial work.
Commenting, Tim Morgan, CEO and Co-founder at E.R.E Property, said: “The growth figures released by the ONS today show that the wider UK economy is back on track. It is especially pleasing to see that the rate of growth beat forecasts and we hope that this upward trajectory can continue through the remainder of the year.
“With that being said, it’s clear to see that high interest rates are weighing on construction output. Today’s data should further encourage the Bank of England to cut the base rate over the summer and provide a much-needed boost to the sector.” To contact E.R.E Property or view investment opportunities, visit https://ereproperty.com.
