- ORIGINAL NEWS
Recession-hit Britain swings to economic growth in January, helped by construction bounce
- SUMMARY
The United Kingdom’s economy showed a glimmer of improvement in January, as its overall output grew by a modest 0.2%.
This was largely due to a surge in construction, which rebounded from a previous decline.
However, the growth was not evenly distributed.
While the services sector, which dominates the UK economy, grew slightly, production output actually fell.
Additionally, despite the monthly growth, the UK economy is still smaller than it was a year ago and over the past three months.
Economists say these figures signal a possible gradual recovery in the coming months.
They believe that the UK economy may have been in a shallow recession in the second half of last year, but it is likely that this will not continue in the first quarter of 2024.
The British pound did not respond favorably to the news, dropping slightly against both the US dollar and the euro.
- NEWS SENTIMENT CHECK
- Overall sentiment:
neutral
Positive
“U.K. gross domestic product grew 0.2% in January, the Office for National Statistics said Wednesday, as construction output jumped more than expected.”
“This is good to see, but we’ll have to see it on a more prolonged basis to know that it is something sustained.”
Negative
“The U.K. economy entered a shallow recession in the second half of last year.”
“Despite recording monthly growth, GDP was estimated to have shrunk 0.3% compared with a year ago in January, and fallen 0.1% over the three months to January 2024.”