UK economy grows by 0.5% in Q2 in win for Britons
The UK economy grew for the second consecutive quarter
PA
The UK economy grew for the second quarter of 2024 as the country moves further away from the the threat of recession, according to figures from the Office for National Statistics (ONS).
Economic output in Britain jumped by 0.5 per cent over the period, however this is slower than previously estimated.
A preliminary ONS report projected domestic product growth to increase by 0.6 per cent between April 1 and June 30, 2024.
This comes after the Organisation for Economic Cooperation and Development's (OECD) recent forecast that the UK economy shall grow by 1.1 per cent in 2024 and 1.2 per cent in 2025, respectively.
Previously, the Paris-based organisation estimated UK economic growth to jump by 0.4 per cent and one per cent.
This matched similar forecasts from the Bank of England in August.
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Despite the economy growing, growth came under expectations
GETTYBased on the ONS's figures, growth was mainly driven by an increase in the services sector.
However, the manufacturing and construction industries industry pulled down on the headline figure.
These latest statistics suggest the economy remains on the path to recovery after falling into a technical recession towards the end of last year.
A "technical recession" is defined as happening when a country experiences two consecutive quarters of economic growth.
With its latest revision, the OECD now positions Britain's growth rate as being closer to most other countries in the G7.
Despite this, the UK lags behind the economic growth taking place in the United States.
Chancellor Rachel Reeves has stated growth is the new Labour Government's primary objective since returning to power.
She explained: "Faster economic growth figures are welcomed, but I know there is more to do and that is why economic growth is the number one mission of this Government."
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Rachel Reeves
GB NEWSOECD chief economist Alvaro Santos Pereira shared: "The UK needs more investment, and so we need to create fiscal space in order to do so."
Even with the OECD's growth projections, the organisation estimates inflation in Britain will be higher than anywhere else in the G7 over the next two years.
As it stands, economists believe the consumer price index (CPI) rate will be an average of 2.7 per cent in 2024 and 2.4 per cent in 2025.
Inflation is currently sitting at 2.2 per cent which is higher than Bank of England's desired two per cent target.