UK Economy Grows By 0.6% in the Second Quarter
According to the official data from the Office of National Statistics, the UK economy continued its recovery in the second quarter of 2024, rising by 0.6% between April and June. This comes after a 0.7% increase in the first quarter, signifying the economy’s gradual comeback after a challenging end to last year. The service sector, especially technology, legal services, and scientific research, led the growth, offsetting weaker performance in manufacturing and construction.
Economists view this steady growth as a sign of a stabilising economy. Nevertheless, there are some concerns about potential slowdowns in the latter half of the year.
Service Sector At the Forefront
The Service sector continued to dominate the economy, contributing significantly to the overall expansion in the first half of 2024. Technology, legal services, and scientific research saw notable growth. On the other hand, industries like retail and TV production faced some setbacks. The Screen Actors Guild strikes in the U.S. continued to affect the UK’s TV and film production output, reducing overall growth in these areas.
The UK economy’s recovery began after a shallow recession at the end of 2023. The figures have been promising since then. However, experts have warned that the growth seen in the first half of the year may not persist at the same pace in the latter part of 2024.
Manufacturing and Construction Still Finding Their Footing
While services thrived, the manufacturing and construction sectors faced some declines in the second quarter. Manufacturing output remained subdued, despite a slight uptick in June. Meanwhile, construction dipped by 0.1%. This can be primarily attributed to the reduced new building projects, though repair and maintenance work saw growth.
With the Bank of England cutting interest rates earlier in the year, further reductions may boost these struggling sectors. For now, the economy continues to face mixed results, with growth heavily reliant on the strength of its services.
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