THE UK economy has grown for the second month in a row, official figures show.
Gross Domestic Product (GDP) grew by 0.1% in February this year, following a rise of 0.3% in January.
AlamyGDP grew again in February, official figures show[/caption]
The rise was partly due to growth in the production sector, the Office for National Statistics (ONS) said.
Liz Mckeown, director of economic statistic and the ONS, said: “The economy grew slightly in February with widespread growth across manufacturing, particularly in the car sector.
“Services also grew a little with public transport and haulage, and telecommunications having strong months.”
It follows two quarters of GDP contracting between July and December last year.
The UK economy shrank by 0.3% in the last three months of 2023 meaning the UK tipped into a technical recession, defined as two or more quarters in a row of falling Gross Domestic Product (GDP).
But experts said the recession was considered “mild” compared to others in recent history.
Alice Haine, personal finance analyst at Bestinvest said the increase in GDP raises hopes that the downturn was “a short-term blip with a recovery already underway”.
A healthy economy is one where GDP is growing but if it stalls or is falling, it’s bad news for businesses and consumers.
What it means for your money
GDP is a measure of the economic output of companies, individuals and governments.
It’s also a measure of how healthy and prosperous an economy is.
If GDP is going up, it generally means people pay more in tax because they’re earning and spending more.
This means more money for the government who can spend the extra cash on public services such as schools and hospitals.
When the economy shrinks, this can go in reverse, meaning households can see their standard of living drop.
If GDP falls, it means businesses struggle and may lay off staff from work as well.
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