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UK economy grows in Q1

The UK economy grew by 0.8% in the first quarter of 2014 with three of the four main industry groupings showing an increase, according to the Office for National Statistics (ONS).

UK economy grows in Q1

Construction output rose slightly in Q1 compared to the final period of 2013, contributing 0.02 percentage points to the increase in Gross Domestic Product (GDP). Output grew despite a weak February, in which much of the UK was hit by poor weather.

Output in production and services both grew by 0.8% and 0.9% respectively, but agriculture output decreased by 0.7%.

The economy is now 0.6% smaller than its 2008 peak, said the ONS. The GDP is a measure of a country’s economic activity, including all the goods and services produced in a given period.

Reacting to the growth, Chancellor George Osborne said the figures show that Britain is “coming back” but added he won’t be taking anything for granted.

“We have to carry on working through our long term economic plan,” he said.

“For the first time in a decade all three main sectors of the economy – manufacturing, services and construction – have grown by at least three per cent in the last year.

“The impact of the Great Recession is still being felt, but the foundations for a broad based recovery are now in place. The biggest risk to economic security would be abandoning the plan that is laying those foundations.”

About Fiona Russell-Horne

Fiona Russell-Horne
Group Managing Editor across the BMJ portfolio.

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