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UK GDP increased by 0.2% in January, up from a decline of 0.1% in December, as an increase in spending in shops helped to boost growth.
While the performance was expected by economists it means that GDP is estimated to have fallen by 0.3% compared with the same month last year and, looking over the longer term, GDP is estimated to have fallen by 0.2% in the three months to January 2024 compared with the three months to January 2023.
Overall, wholesale and retail trade; repair of motor vehicles and motorcycles experienced a 1.9% increase on the month, following a 1.9% fall in December 2023. The largest contribution came from retail trade, except of motor vehicles and motorcycles, which grew by 3.4%.
The next biggest contributor was the construction sector. In January 2024, monthly construction output is estimated to have increased 1.1% in volume terms. This follows three consecutive falls in monthly construction output.
The increase in monthly output in January 2024 came from increases in both new work (1.1%) and repair and maintenance (1.2%).
This was partially offset by production output that fell by 0.2% in January 2024, and in the three months to January 2024 production output also fell by 0.2%.
ONS Director of Economics Statistics Liz McKeown said: “The economy picked up in January with strong growth in retail and wholesaling. Construction also performed well with housebuilders having a good month, having been subdued for much of the last year.
“These were partially offset by falls in TV and film production, lawyers and the often-erratic pharmaceutical industry. Over the last three months as a whole, the economy contracted slightly.”
