The UK economy grew 0.7% in the first quarter, with the figures revised up from an earlier estimated increase of 0.6%, according to the Office for National Statistics (ONS).
In output terms, services — businesses like hairdressers, banks, and hospitality — grew by 0.8% on the quarter with widespread growth across the sector. Elsewhere, the production sector grew by 0.6%, while the construction sector fell by 0.6%.
Economic growth has become a key sticking point and an issue in the upcoming election as the UK has emerged from COVID, with lagging growth seen in the UK over the last few years. Compared with other G7 nations, the UK saw the strongest growth last quarter, the data showed.
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In terms of people’s personal finances, the household saving ratio edged up compared with Q4 of 2023. This was driven by an increase in income from wages and salaries of £3bn, an increase in the adjustment for pension entitlements of £3.7bn, and a decrease in households’ actual social contributions paid by employees of £3.4bn, which was driven by the reduction of the employees’ national insurance contribution rate.
The ONS also said that real households’ disposable income (RHDI) is estimated to have grown by 0.7% in the first quarter of 2024, maintaining the same growth as the previous quarter.
The report confirms that the economy shrank in the second half of last year — contracting by 0.1% in the third quarter and 0.3% in the last three months of the year — a technical recession.
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Robert Johnson is a UK-based business writer specializing in finance and entrepreneurship. With an eye for market trends and a keen interest in the corporate world, he offers readers valuable insights into business developments.
