Are we finally heading out of a shallow recession?
The UK economy grew slightly again in February, reinforcing the notion that it may be steering clear of a recession.
Monthly real gross domestic product (GDP) rose by 0.2% in January following the revised 0.3% growth in January.
Over the three months to February 2024, the economy expanded by 0.2%, compared to the previous three-month period ending in November 2023.
The recent uptick in GDP, coupled with growth recorded in January, suggests the economy could be on track to expand in the first quarter of the year, signalling the end of the brief and mild recession that started in late 2023.
GDP is estimated to have grown 0.1% in February 2024:
— Office for National Statistics (ONS) (@ONS) April 12, 2024
▪️ Services grew (+0.1%)
▪️ Production grew (+1.1%)
▪️ Construction fell (-1.9%)
➡️ https://t.co/N7NfPfXG6i pic.twitter.com/8VaYZ5SIz0
Latest GDP data from the Office for National Statistics (ONS) showed that the services sector, which accounts for a significant portion of the GDP, also saw growth of 0.1% in February. This followed a 0.3% rise in January, which was an upward revision from the previously reported 0.2%. The sector’s output increased by 0.2% in the quarter ending in February 2024.
Production output provided a notable boost, surging by 1.1% in February and marking the largest contribution to GDP growth. This rebound came after a decline of 0.3% in January, revised down from an initially reported 0.2% drop. The production sector grew by 0.7% over the three-month period.
However, the construction sector experienced a setback, with output decreasing by 1.9% in February. This followed steady growth of 1.1% in January, which remained unchanged upon revision. Overall, construction output declined by 1% in the three months to February 2024.
“The economy grew slightly in February with widespread growth across manufacturing, particularly in the car sector,” said Liz Mckeown, ONS director of economic statistics. “Partially offsetting this, there were notable falls across construction as the wet weather hampered many building projects.
“Looking across the last three months as a whole, the economy grew for the first time since last summer.”
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