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The UK economy returned to growth in January helped by the expansion of the services sector, following a technical recession in the second half of 2023.
Gross domestic product rose 0.2 per cent between December 2023 and January, driven by 0.2 per cent expansion in the services sector, the Office for National Statistics said on Wednesday.
This was in line with analysts’ expectations and followed two consecutive quarters of economic contractions in the second half of 2023, which marked a technical recession.
January’s GDP growth raises expectations of the UK economy expanding in the first quarter, which would bring the recession to an end.
Commenting on the GDP figures for January, Liz McKeown, ONS director of economics statistics, said: “The economy picked up in January with strong growth in retail and wholesaling. Construction also performed well with housebuilders having a good month, having been subdued for much of the last year.”