The UK economy grew by more than initially estimated at the start of this year,
according to figures from the Office for National Statistics (ONS).
The economy grew by 0.7% between January and March 2024, up from the previous
figure of 0.6%. Growth in the UK services sector helped to push it even higher,
the ONS said.
The positive news on growth followed the UK inflation rate falling to its lowest
level in almost three years.
According to the ONS, the Consumer Prices Index (CPI) rose by 2% in the year to
May 2024, down from 2.3% in April.
The data showed that whilst prices are still rising, they're increasing at their
slowest pace since July 2021.
David Bharier, Head of Research at the British Chambers of Commerce (BCC), said
the data is 'a further sign that the UK is exiting the inflation crisis
which began in late 2020'.
He continued: 'It provides additional weight for an interest rate cut in the
coming months, something which will be welcomed by firms of all shapes and
sizes.
'Our research has shown that a steadily declining number of businesses are
concerned about inflation, from a record peak of 84% in mid 2022. This is
positive news, but prices are not falling, just rising more slowly, and the
economic outlook remains challenging.'
Internet links: ONS ONS BCC