UK economy sees modest growth in the final months of 2024 – ONS
The Office for National Statistics said gross domestic product edged 0.1% higher between October and December.
The UK economy eked out growth in the final quarter of last year after better-than-expected expansion in December, according to official figures.
The Office for National Statistics (ONS) said gross domestic product (GDP) edged 0.1% higher between October and December, following no growth in the previous three months.
The ONS estimated that the economy expanded by 0.4% in December, which is better than most analysts expected, and marked a pick up following a 0.1% rise in November and a 0.1% fall in October.
The fourth quarter figures and an upward revision to first quarter output – to 0.8% growth – means the economy grew by 0.9% overall in 2024, up from 0.4% growth in 2023.
Chancellor Rachel Reeves said: “After 14 years of flatlining living standards, we are going further and faster through our plan for change to put more money in people’s pockets.
“That is why we are taking on the blockers to get Britain building again, investing in our roads, rail and energy infrastructure, and removing the barriers that get in the way of businesses who want to expand.”
The data saw the UK defy forecasts last week from the Bank of England for a contraction of 0.1% in the fourth quarter, but experts said fears remain over the economy.
While the immediate pressure on the Chancellor may have eased a little, there are still worries over whether she will meet her fiscal rules, as well as the impact on businesses and jobs from recent Budget measures.
Warnings are mounting that moves to hike national insurance contributions and the minimum wage at last October’s budget will see businesses raise prices and slash jobs.
Ben Jones, lead economist at the CBI business group, said: “Although growth over the fourth quarter as a whole was still lacklustre, the data supports our view that the loss of momentum in the second half of last year will prove to be a soft patch for the economy rather than a slide back into stagnation.
“But our recent forecast for a return to moderate growth over 2025 will require consumers to abandon some of their recent caution.
“And it assumes that businesses won’t see their headroom for investment squeezed any further.”
The ONS said growth in services and production drove the growth in December, which was the fastest monthly growth since March last year.
ONS director of economic statistics Liz McKeown said: “The economy picked up in December after several weak months, meaning, overall, the economy grew a little in the fourth quarter of last year.
“Across the quarter, growth in services and construction were partially offset by a fall in production.”
She added: “In December wholesale, film distribution and pubs and bars all had a strong month, as did manufacturing of machinery and the often-erratic pharmaceutical industry.
“However, these were partially offset by weak months for computer programming, publishing and car sales.”
