UK economy grew less than first thought GDP figures show – what it means for your money
THE UK economy grew less than first thought, revised GDP figures show.
Gross Domestic Product went up by 0.5%, not 0.6%, in the second quarter of this year, the Office for National Statistics (ONS) has said.
Growth was mainly driven by a rise in the services sector, but the manufacturing and construction industries industry dragged down the headline figure, according to the ONS.
It comes following GDP growth of 0.7% from January to March, which was revised up from 0.6% previously.
GDP measures the value of goods and services produced in the UK.
It also estimates the size and growth of the economy.
The fresh figures published this morning show that the UK economy continued its recovery from recession at the end of last year, just at a slightly slower pace than previously thought.
Compared with the same quarter a year ago, real GDP is estimated to have increased by 0.7% between April to June this year.
The latest figures still mean that GDP has grown for two consecutive quarters and will come as a boost to the Government despite inflation sticking to 2.2% in August.
Liz McKeown, director of economic statistics, ONS said: “Today’s updated GDP figures for 2023 and 2024 include new annual survey data, VAT returns and updated information about the relative size of each industry for the first time.
“However, after taking on these improvements, the quarterly growth path across the last 18 months is virtually unchanged.”
Ms McKeown also added that according to the latest data show that household savings continue to increase and are now at their highest rate since the Covid-19 lockdowns.
Economists had previously predicted the UK economy would continue to grow across the second quarter of this year, with higher growth expected in the second part of 2024 and into 2025.
It came following inflation slowing to 2.2% from a record high of 11.1% in October 2022.
The UK economy shrank by 0.3% in the last three months of 2023 meaning it tipped into a technical recession, defined as two or more quarters in a row of falling Gross Domestic Product (GDP).
However, experts said the recession was considered “mild” compared to others in recent history.