UK emerges from recession as the economy grows 0.6%

The UK economy is officially out of recession after it grew by 0.6 per cent in the first three months of the year, according to the Office for National Statistics. It rebounded with faster-than-expected growth after a consensus of economists had previously predicted a 0.4 per cent improvement.

- JOE MIDDLETON

The latest figures come after two quarters of decline - which represents a technical recession - in the back half of 2023. Responding to the GDP figures, chancellor Jeremy Hunt said yesterday: "There is no doubt it has been a difficult few years, but today's growth figures are proof that the economy is returning to full health for the first time since the pandemic.

"We're growing this year and have the best outlook among European G7 countries over the next six years, with wages growing faster than inflation, energy prices falling and tax cuts worth £900 to the average worker hitting bank accounts."

The performance was particularly driven by improvements in the services and production sectors, which grew by 0.7 per cent and 0.8 per cent, respectively. The ONS confirmed the quarterly performance yesterday after 0.4 per cent economic growth in March, again boosted by the UK's service industry.

There was notable growth for the human health and social services sector, administrative and support services, as well as for wholesale and retail firms. Construction output, however, fell during the month, but its 0.4 per cent drop represented a significant reduction in decline after a 2 per cent fall in February.