UK economy grows slightly for second month in a row with 0.1% GDP expansion

UK economy grows slightly for second month in a row with 0.1% GDP expansion

The UK economy has grown slightly for the second month in a row, official figures show.

Gross domestic product (GDP) grew just 0.1% in February, the Office for National Statistics (ONS) said.

It’s another signal that the UK economy is working its way out of recession.

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Growth of 0.3% was recorded last month – and that figure has been revised upwards from a previous estimate of 0.2%.

A recession was declared in February after data showed two quarters of economic contraction.

If the economy expands for three months, the UK will be officially out of recession.

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February growth came thanks to expansion in manufacturing, especially in the car industry, the ONS said.

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Nish Kankiwala John Lewis chief executive told Sky News the political and economic turbulence of recent years had damaged consumer confidence.

The services sector also grew a little as public transport, haulage, and telecommunications had a strong month.

Overall growth was historically small as sectors such as construction were hampered by heavy rainfall.

It’s not the first time rain has dampened production and economic growth as a result.

As the UK experienced a record 18 months of rainfall retail sales and building activity in particular have been down, weighing on productivity across the country.

But when the past three months are looked at as a whole, the economy grew for the first time since last summer, the ONS said.

It’s good news for the Conservative party as Prime Minister Rishi Sunak made growing the economy one of his five priorities.

So far only one has been achieved – halving inflation.

Responding to the data, Chancellor Jeremy Hunt said:

“These figures are a welcome sign that the economy is turning a corner, and we can build on this progress if we stick to our plan.

“Last week our cuts to National Insurance for 29 million working people came into effect across Britain, as part of our plan to reward work and grow the economy.”