Economy grew in Janaury raising hopes UK could already be out of recession

13 March 2024 , 08:56

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The UK economy returned to growth at the start of the year, according to official figures (Image: PA Wire/PA Images)

New data has revealed the UK economy grew slightly at the beginning of the year raising hopes that the country is coming out of recession.

The Office for National Statistics (ONS) said that the economy grew by 0.2% in January after it shrank by 0.1% in December. Retail figures improved as consumers looked for bargains in the sales after Christmas and spending in supermarkets also rose.

Spending on new homes and householders fixing up their properties also helped the economy swing into growth. Liz McKeown from the ONS 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."

"These were partially offset by falls in TV and film production, lawyers and the often-erratic pharmaceutical industry. Over the last three months as a whole, the economy contracted slightly."

Chancellor Jeremy Hunt said: "While the last few years have been tough, today's numbers show we are making progress in growing the economy part of which makes it possible to bring down national insurance contributions by £900 this coming year. But if we want the rate of growth to pick up more we need to make work pay which means ending the unfairness of taxing work twice."

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