The UK economy expanded by 0.6% between April and June, marking a second consecutive quarter of growth as the country continues its recovery from last year’s brief recession. The figure, which aligns with market expectations, follows a 0.7% increase in the first quarter of 2024.
Growth was primarily driven by the services sector, particularly IT, legal services, and scientific research. These sectors, which make up the largest share of the UK’s economic activity, outperformed manufacturing and construction, both of which saw declines over the same period.
“This marks two strong quarters of growth after a challenging end to last year,” said Liz McKeown, director of economic statistics at the Office for National Statistics (ONS). The UK economy fell into a mild recession in late 2023, but has rebounded strongly since then.
Despite overall growth in the quarter, June’s figures showed flat performance, largely due to strike action by junior doctors, which led to nearly 62,000 canceled NHS appointments. Economists have cautioned that the pace of growth could slow in the second half of 2024, citing high interest rates and subdued business activity during the summer.
Anna Leach, chief economist at the Institute of Directors, noted that businesses are reporting modest activity levels, reflecting the ongoing impact of elevated borrowing costs. “The challenge for government is to lift the UK’s growth performance sustainably, which requires long-term infrastructure investment and consistent policy,” Leach added.
Chancellor Rachel Reeves acknowledged the hurdles ahead, stating: “The new government is fully aware of the economic challenges we face after more than a decade of low growth.”
However, shadow chancellor Jeremy Hunt countered, arguing that the GDP figures show Labour inherited a resilient economy poised for continued expansion. The political debate highlights differing perspectives on how to sustain the recovery amid ongoing uncertainties.