Q1 growth revised higher

Revised figures show that the UK’s exit from recession was stronger than first estimated.

Gross domestic product (GDP) grew by 0.7% between January and March, up from the previous estimate of 0.6%, the Office for National Statistics (ONS) said on Friday. This followed falls in the previous two quarters.

The updated monthly figure uses additional data to provide a more precise indication of economic growth.

It was driven by widespread growth in the services sector, which accounts for almost 80% of the economy. The ONS also said that there was an increase in household spending on recreation and culture, as well as housing and food.

However, there was zero growth in April as particularly wet weather put off shoppers and slowed down construction projects.

A report from think tank the Resolution Foundation said on Friday that real household disposable income per capita was lower in early 2024 than in late 2019, with average disposable incomes down £120 a year per person over the period since the last election.