The UK economy grew slightly stronger in the first quarter of this year than previously estimated, the British statistics office ONS said on Friday. Reuters and the tradingeconomics portal reported.
UK GDP Growth in Q1 2024
| Indicator | Value |
|---|---|
| Quarter-on-quarter growth | 0.7% |
| Year-on-year growth | 0.3% |
| Growth in services and transport sectors | 0.6% |
| Growth in household spending | 0.4% |
| Contraction in construction sector | -0.6% |
| Growth in government spending | 0.0% |
According to revised ONS data, UK gross domestic product (GDP) grew by 0.7% quarter-on-quarter in Q1. In the preliminary estimate from May, statisticians reported growth of 0.6%. Friday’s data represent the strongest quarterly growth in the UK economy in more than two years and also confirm the economy’s emergence from recession. The UK economy entered recession in Q4, as it contracted in both Q3 and Q4.
The higher-than-expected growth, which also beat analysts’ expectations (they did not expect a revision of the data), was mainly driven by the services and transport sectors. Household spending was also higher. While statisticians had originally reported growth of 0.2%, on Friday they released that it grew by 0.4%.
In contrast, the construction sector contracted by 0.6% and government spending performed worse than originally reported. In May, ONS reported growth of 0.3%, but now reported that it stagnated.
Key Points:
- UK GDP grew by 0.7% in Q1, up from a preliminary estimate of 0.6%.
- This is the strongest quarterly growth since Q4 2021.
- The economy emerged from recession in Q1.
- Growth was driven by the services and transport sectors, and household spending.
- Construction contracted and government spending stagnated.
Sources: UK GDP growth revised up to 0.7% in Q1
