Gross Domestic Product (GDP) grew 0.2% in January, according to new estimated figures published today by the Office for National Statistics (ONS) just one month after the UK entered ‘technical recession’ following contraction of GDP in the third and fourth quarters of 2023.
East Midlands Chamber Chief Executive Scott Knowles said:
“This growth in GDP adds further weight to already strong signs that the ‘technical recession’ the UK entered at the end of last year will be short lived. The services sector, where output grew by 0.2%, along with construction has been largely to thank for this uplift. Increased spending on the high street and improving customer confidence can only be a good thing in driving the economy forward.
“While there’s reason for optimism, we’re still some way off where we need to be. The fact that we had less encouraging quarters at the end of last year – that ultimately got us into the ‘technical recession’ in the first place – are still a fair indicator that we’re not on fully stable ground just yet.
“The raising of the VAT threshold announced in last week’s Budget was welcome but only a small step forward. We know the huge growth potential of the East Midlands but it’s not right that we’re held back by poor infrastructure and the critical need to make skills a primary focus. These are key asks that we took to Westminster this week and presented to the government as priorities in our Manifesto for Growth 2024.”
