Business

UK economy returns to growth

Growth returned in the UK economy in January, according to official figures.

The measure of everything produced in the UK – a metric called gross domestic product (GDP) – rose 0.2%, the Office for National Statistics (ONS) said.

It’s the first official economic growth announcement since a recession was declared last month as there were two successive three-month periods of negative economic growth.

When looked at over a three month period, GDP fell 0.1% up to January.

But the overall growth in January could mean the recession is the shortest ever in UK history, if the trend continued into February and March.

The main reason the economy grew was down to the services industry, the ONS said.

The data, however, is just an estimate and is subject to revision.

More on Uk Economy

Figures are routinely revised as more information becomes available.

Responding to the data, Chancellor Jeremy Hunt said:

“While the last few years have been tough, today’s numbers show we are making progress in growing the economy – part of which makes it possible to bring down national insurance contributions by £900 this coming year.

“But if we want the rate of growth to pick up more we need to make work pay which means ending the unfairness of taxing work twice.”

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