The UK’s GDP experienced a modest rise, highlighting varied economic trends.
- The UK’s GDP increased by 0.6% from April to June 2024.
- This growth follows a stronger rise of 0.7% in the first quarter of the year.
- While overall services saw growth, consumer-facing services slightly declined.
- Key sectors like real estate and retail faced significant decreases.
The UK’s GDP saw a modest increase of 0.6% in the second quarter of 2024, building on a growth rate of 0.7% in the first quarter, according to the Office for National Statistics (ONS). This indicates sustained, yet slightly slowed, economic expansion during the period.
In detail, the services sector reported a 0.8% growth across various sub-sectors. Notably, this comprehensive growth did not extend to consumer-facing services, which recorded a marginal decline of 0.1%. This downturn in consumer services suggests a potential shift in consumer behaviour or spending patterns during the quarter.
The report highlighted a 1.2% decline in the trade related to real estate transactions, as well as a 1.4% decrease in the wholesale and retail trade, including the repair of motor vehicles and motorcycles. These declines were significant contributors to the underperformance within consumer services.
Conversely, the professional, scientific, and technical activities sub-sector emerged as a strong performer, showing a robust 2.5% increase. This growth was driven by domains such as scientific research and development, legal services, and architectural and engineering activities, underscoring the diverse areas of strength within the UK economy.
Overall, while the UK economy demonstrated growth in Q2 2024, challenges in consumer services and specific sectors tempered this progress.
