UK Economy Growth in Early 2024
The UK's economy expanded by 0.6% in the first quarter of 2024, covering the period from January to March, as reported by the latest official data from the Office for National Statistics (ONS).
The ONS highlighted that economic growth accelerated during these three months, primarily driven by the services sector, which remains the largest contributor to the economy.
Monthly Performance and Sector Contributions
Monthly data revealed that the economy grew by 0.3% in March, surpassing analysts' expectations. This month was also the first complete month included in the figures since the outbreak of the Iran war.
The services sector's growth was notably supported by strong performances in wholesale, computer programming, and advertising industries.
Additionally, the construction sector showed signs of recovery, returning to growth after experiencing weakness towards the end of the previous year.
Liz McKeown, the ONS's director of economic statistics, said the construction industry had also returned to growth, "though only partly reversing weakness at the end of last year".
Revisions and Economic Outlook
The ONS noted that these figures are subject to revision in subsequent months. While March's growth exceeded expectations, the estimate for February was revised downward from 0.5% to 0.4%, and January's growth was adjusted from 0.1% to zero.
Government Response
In response to the data, Chancellor Rachel Reeves emphasized that the figures validate the government's current economic strategy.
"Now is not the time to put our economic stability at risk. To do so would leave families and business worse off," she said.
"Instead, this government is getting on with the job of building an economy that is stronger, more resilient, and prepared for the future."
