Thursday, September 19, 2024

UK economy grows 0.6% – as general election and strikes partially blamed for flatline in June

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The UK economy grew 0.6% over three months, official figures show. 

But there was no growth at all in June, the Office for National Statistics said, as businesses delayed purchases until after the general election.

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“In a range of industries across the economy, businesses stated that customers were delaying placing orders until the outcome of the election was known,” the ONS said, though added it’s difficult to quantify the exact impact.

Strikes were also identified as a reason for the flatline. At the time junior doctors were still striking.

The impact of international industrial disputes was seen as last year’s US Screen Actors Guild strike is still affecting UK production schedules, the ONS said.

The June GDP number fell from a month earlier when the economy expanded 0.4%.

Gross domestic product (GDP) – the measure of everything produced in the UK – expanded from April to June.

How does the UK compare?

That growth rate was the second highest among the G7 group of industrialised nations, only the United States performed better with 0.7%.

Two G7 countries, however, have yet to publish their GDP data for the period – Japan and Germany.

When looking at for the first six months of the year the UK has the highest growth rate with 0.7% GDP growth in the first three months of the year.

A second three month period of growth means a recession is firmly in the rearview mirror.

The UK met the definition of recession when the economy shrank for two three-month quarters in a row at the end of 2023.

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