UK takes another step towards end of recession

Gross domestic product (GDP) grew 0.1% in February, according to the Office for National Statistics (ONS), despite retail being impacted by record-breaking wet weather.

The UK made the incremental step towards a recession-free economy in the face of early 2024 being the fourth wettest start to the year since records began. The 0.1% climb matched City economists’ forecasts after growth in January was revised up from 0.2% to 0.3%.

The ONS said: "The largest negative contribution to services growth in February 2024 came from wholesale and retail trade."

However, there was 0.2% growth across all consumer-facing services, including retail trade, in the three months to February this year compared with the three months to November 2023.

Liz McKeown, an ONS director of economics statistics, said: "The economy grew slightly in February with widespread growth across manufacturing, particularly in the car sector. Services also grew a little with public transport and haulage, and telecommunications having strong months.

"Partially offsetting this there were notable falls across construction as the wet weather hampered many building projects.

"Looking across the last three months as a whole, the economy grew for the first time since last summer."