Boosting hopes of recovery, the UK economy grew by 0.2% in January, lifted by the services and construction sectors while industrial output fell.
This compares with a decline of 0.1% in December, according to the Office for National Statistics, and was in line with expectations.
In the three months to January, GDP is estimated to have fallen by 0.1% compared with the three months to October.
Services grew by 0.2% in January and was the largest contributor to the rise in GDP, but showed no growth over the three-month period. Production output fell by 0.2% in January, and in the three months to January it was also down by 0.2%.
Construction output grew by 1.1% in January, but in the three-month period it fell by 0.9%.
The UK entered a shallow recession when GDP fell in the third and fourth quarters of 2023, but the latest figures will bring some relief to Rishi Sunak’s government.
The largest contribution to the growth in services in January came from retailers, as well as wholesalers. Health and social work activities grew by 0.6% following a 0.9% fall in December. Education also grew, by 0.7%, following three monthly declines.
However, legal activities, architecture and engineering, accounting, tax consultancy declined. Information and communication services fell by 0.7% in January, mainly because of a 9.5% drop in motion picture, video and TV programme production.
The agenda • 10am GMT: eurozone Industrial production for January (forecast: -1.5% m/m) • 12pm GMT: UK NIESR monthly GDP tracker for February
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