Copy article

GDP figures - Has the economy turned a corner?

ended 12. April 2024

According to official data released this morning, monthly real gross domestic product (GDP) is estimated to have grown by 0.1% in February 2024, following growth of 0.3% in January 2024 (revised up from 0.2% growth in our previous publication). Real gross domestic product is estimated to have grown by 0.2% in the three months to February 2024, compared with the three months to November 2023.

Services output grew by 0.1% in February 2024, following growth of 0.3% in January 2024 (revised up from 0.2% growth in our previous publication), and has grown by 0.2% in the three months to February 2024.

Production output grew by 1.1% in February 2024 and was the largest contributor to the growth in GDP in the month, following a fall of 0.3% in January 2024 (revised down from a 0.2% fall in our previous publication); production output grew by 0.7% in the three months to February 2024.

Construction output fell by 1.9% in February 2024, following an unrevised growth of 1.1% in January 2024; construction output has fallen by 1.0% in the three months to February 2024.

The chancellor, Jeremy Hunt, said this morning the figures were a “welcome sign that the economy is turning a corner, and we can build on this progress if we stick to our plan”.

As a small business owner, do you think the economy is turning a corner? How are you finding business right now?

 

11 responses from the Newspage community

Copy all

Copy

Editor
Riz Malik
Independent Financial Adviser at R3 Wealth
There is nothing to celebrate with economic figures like these. It is the equivalent of going from an F to an E in an exam. If anything, it gives Threadneedle Street further justification for not lowering the base rate anytime soon. Considering where our economic growth forecasts look for this year and next year compared to other economies I think resignations are in order.
Copy

Editor
Ben Perks
Managing Director at Orchard Financial Advisers
Jeremy may think the economy is turning a corner, but it is doing so at a snails pace with very little help from those in cabinet. Whilst GDP growth of 0.1% is a stumble in the right direction it's hardly anything to get excited about.
Someone needs to step up and take action to stimulate the economy but it's unlikely to come from the Bank Of England who seem intent on holding the base rate. To the public it feels like the Chancellor is treading on egg shells and is afraid to implement positive change, but we need to get things cracking. We are in touching distance of the middle of 2024 and still nothing has really happened to improve conditions for borrowers.
Copy

Editor
Stephen Perkins
Managing Director at Yellow Brick Mortgages
Less turned a corner, more like circling the drain. There is certainly nothing to be joyous about in these latest figures though of course they could have been worse. Real growth will only return when the Bank of England releases its stranglehold on the throat of the economy by reducing the base rate.
Copy

Graham Cox
Director at Bridging Hub
Today's results reveal more limp-along growth from a limp-along government. The all-important services sector, which accounts for 80% of UK GDP, grew a paltry 0.1% in February. It's no surprise, when the ordinary person's disposable income has been slashed to the bone. Small businesses will continue to struggle whilst consumers are weighed down by a soaring cost-of-living and crippling mortgage and other debts. We need radical policies to boost the economy, not tinkering around the edges.
Copy

Dan Hawes
Co-Founder at The GRB Group
Investing in graduate talent is most definitely a sign that companies are now thinking strategically as they prioritise growth with renewed confidence after stalling for the last 6 months.
Copy

Susan Bonnar
Founder at The British Craft House
The British Craft House has seen sustained growth in sales post Christmas and during what would be traditionally quieter times for a gift website. Apart from during Covid, the website just had its best February for sales since launching in 2019.

There was definitely a demographic that carried on buying high value items such as paintings and expensive jewellery, but what is encouraging is the return to good levels of sales for items that are more impulse buys. These are the first items to slow down when the economy is struggling.

As a platform owner it is encouraging and I am optimistic for continued growth throughout 2024.
Copy

Gary Bush
Financial Adviser at MortgageShop.com
Those GDP figures are a much needed confirmation to the UK's population that things could be on the bounce. 2024 started well it seems for most businesses but March seemed very gloomy across the board. The UK has been very resilient through this storn off the back of the pandemic but things seemes strained in households whereever you look at the moment. The FTSE, on hearing the GPD data, has jumped to an all time high in early trading already.
Copy

Richard Jennings CeMAP
Founder & Managing Director at Richard Jennings Mortgage Services
Whilst it is pleasing to see positive movements forward on these figures, for the majority of the UK these mean nothing and translate very little in to real life. What the general public, business owners, savers and borrowers really want to feel is that financially they are under less strain, Fuel prices have risen yet again, peoples disposable income is still stretched at best and non existent at worst. Focus on these numbers are only good when acted on in conuunction, by those in power, with what the UK population is feeling.
Copy

Paul Ashworth
Sales & Marketing Director at We Brand 4 You
Business is the best it's been in long time and companies seem to be spending again and thinking about marketing campaigns for later this year. Confidence is definitely rising, its been a long time coming..
Copy

Danielle McKenny
Owner at Gaea's Garden organic skincare
As a small business owner with a family of 5 I can 100% guarantee that this entire report about the economy "turning the corner" and getting better is absolute lies. This is yet another example of the government making up new ways of calculating things to make it LOOK like they are doing a good job. The economy has NEVER been worse than it is right now. Ever. The True "economy" is measured by the amount of money that is in the pockets of it's people.... and right now the people have nothing but lint in their pockets.
Copy

Lucinda O'Reilly
Director at The International Trade Consultancy
The manufacturing sector is definitely feeling much more positive, many industries have full order books and would ramp up production if they could find more people with the skills they need. The number of companies resuming or starting exporting is on the rise which is always a good indicator of confidence in the future.