A recession was declared in February after data showed two quarters of economic contraction. If the economy expands for three months, the UK will be officially out of recession.
By Sarah Taaffe-Maguire, Business reporter @taaffems
The UK economy has grown slightly for the second month in a row, official figures show.
Gross domestic product (GDP) grew just 0.1% in February, the Office for National Statistics (ONS) said.
It’s another signal that the UK economy is working its way out of recession.
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Growth of 0.3% was recorded last month – and that figure has been revised upwards from a previous estimate of 0.2%.
A recession was declared in February after data showed two quarters of economic contraction.
If the economy expands for three months, the UK will be officially out of recession.
February growth came thanks to expansion in manufacturing, especially in the car industry, the ONS said.
The services sector also grew a little as public transport, haulage, and telecommunications had a strong month.
Overall growth was historically small as sectors such as construction were hampered by heavy rainfall.
It’s not the first time rain has dampened production and economic growth as a result.
As the UK experienced a record 18 months of rainfall retail sales and building activity in particular have been down, weighing on productivity across the country.
But when the past three months are looked at as a whole, the economy grew for the first time since last summer, the ONS said.
Nish Kankiwala John Lewis chief executive told Sky News the political and economic turbulence of recent years had damaged consumer confidence.
It’s good news for the Conservative party as Prime Minister Rishi Sunak made growing the economy one of his five priorities.
So far only one has been achieved – halving inflation.
Responding to the data, Chancellor Jeremy Hunt said:
“These figures are a welcome sign that the economy is turning a corner, and we can build on this progress if we stick to our plan.
“Last week our cuts to National Insurance for 29 million working people came into effect across Britain, as part of our plan to reward work and grow the economy.”
TUC general secretary Paul Nowak said:
“Our economy is still smaller than this time last year with growth stuck in the slow lane. Real wages are still worth less than in 2008. And millions are struggling to cover their bills.
“We need a proper economic plan to turn the country around – not just more scraping along the bottom. That means a real industrial strategy. And it means making sure that our fiscal framework supports government investment in our crumbling infrastructure and public services.”
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.
