The UK economy is on track for recovery after posting a 0.6% growth in the first quarter of the year, according to the Office for National Statistics. This growth exceeded expectations as economists had predicted a 0.4% improvement, marking an end to two consecutive quarters of decline that led to a technical recession in the latter part of 2023.
Chancellor Jeremy Hunt expressed optimism about the state of the economy and noted that despite the challenges faced over the past few years, positive trends such as wage growth outpacing inflation, falling energy prices, and tax cuts will benefit workers. Liz McKeown, director of economic statistics at the ONS, pointed out that service industries such as retail and public transport were major contributors to growth in the first quarter. However, ongoing weakness in construction dampened these gains somewhat.
The Chancellor’s remarks and analysis from ONS highlight positive trends and provide hope for continued economic improvement in the future.
