The UK economy experienced a growth of 0.6% between April and June, marking a steady yet modest expansion.
- Consumer-facing services, however, experienced a decline of 0.1%, indicating challenges in retail and related sectors.
- Services overall grew by 0.8% with significant contributions from professional and technical activities.
- A notable 2.5% rise in scientific, legal, and engineering sectors bolstered the services output.
- Real estate and trade activities faced declines, particularly affecting consumer services.
The UK economy experienced a growth of 0.6% between April and June 2024, signaling a steady continuation of economic expansion. This growth compares with a slightly higher increase of 0.7% in the first quarter of the year, according to the Office for National Statistics (ONS).
Despite the overall growth, consumer-facing services saw a slight contraction of 0.1%. This downturn follows a previous growth of 0.6% in the first quarter. The ONS attributes this decline to specific sectors struggling, such as real estate and wholesale trade. A significant decrease of 1.2% in buying, selling, renting, and operating own or leased real estate was noted, excluding imputed rental. Furthermore, there was a 1.4% fall in wholesale and retail trade, including the repair of motor vehicles and motorcycles.
In contrast, the broader services sector demonstrated resilience with a growth of 0.8% during the same period. Professional, scientific, and technical activities were the largest contributors to this sector’s expansion, posting a robust increase of 2.5%. This surge was predominantly driven by scientific research and development, legal services, and architectural and engineering activities, highlighting these areas as pivotal to the UK’s economic health.
The data underscore the mixed performance of the UK’s economic sectors, where some areas surge ahead while others face ongoing challenges. The overall modest growth reflects a complex economic landscape, navigating both global pressures and domestic adjustments.
The UK’s economic growth remains modest but steady, with varying performance across sectors.
