Responding to the latest UK GDP figures for February 2024, released by the Office for National Statistics today (Friday 12 April 2024), Suren Thiru, Economics Director at ICAEW, said:
Responding to the latest UK GDP figures for February 2024, released by the Office for National Statistics today (Friday 12 April 2024), Suren Thiru, Economics Director at ICAEW, said:
“February’s uptick in GDP suggests that the UK economy is gaining some momentum from the boost to people’s incomes and confidence from falling inflation.
“It’s a racing certainty that the UK exited recession in the first quarter with output likely to have picked up further in March, particularly with the earlier Easter holiday lifting activity in key sectors, including retail.
“While recession concerns are disappearing into the rear-view mirror, the longer-term outlook is still difficult, with the lagged impact of earlier interest rate hikes and chronic supply side constraints likely to continue limiting the UK’s growth potential.
“This GDP increase may give those rate setters still concerned about persistent price pressures sufficient reassurance on the economy to keep interest rates higher for longer than many expect.”
Founded in 1880, ICAEW has a long history of serving the public interest and we continue to work with governments, regulators and business leaders globally. And, as a world-leading improvement regulator, we supervise and monitor around 12,000 firms, holding them, and all ICAEW members and students, to the highest standards of professional competency and conduct.
We promote inclusivity, diversity and fairness and we give talented professionals the skills and values they need to build resilient businesses, economies and societies, while ensuring our planet’s resources are managed sustainably.
ICAEW is the first major professional body to be carbon neutral, demonstrating our commitment to tackle climate change and supporting UN Sustainable Development Goal 13.
ICAEW is a founding member of Chartered Accountants Worldwide (CAW), a global family that connects over 1.8m chartered accountants and students in more than 190 countries. Together, we support, develop and promote the role of chartered accountants as trusted business leaders, difference makers and advisers.
We believe that chartered accountancy can be a force for positive change. By sharing our insight, expertise and understanding we can help to create sustainable economies and a better future for all.
“February’s uptick in GDP suggests that the UK economy is gaining some momentum from the boost to people’s incomes and confidence from falling inflation.
“It’s a racing certainty that the UK exited recession in the first quarter with output likely to have picked up further in March, particularly with the earlier Easter holiday lifting activity in key sectors, including retail.
“While recession concerns are disappearing into the rear-view mirror, the longer-term outlook is still difficult, with the lagged impact of earlier interest rate hikes and chronic supply side constraints likely to continue limiting the UK’s growth potential.
“This GDP increase may give those rate setters still concerned about persistent price pressures sufficient reassurance on the economy to keep interest rates higher for longer than many expect.”
ENDS
Notes to editors:About ICAEW
Chartered accountants are talented, ethical and committed professionals. ICAEW represents more than 202,000 members and students around the world.Founded in 1880, ICAEW has a long history of serving the public interest and we continue to work with governments, regulators and business leaders globally. And, as a world-leading improvement regulator, we supervise and monitor around 12,000 firms, holding them, and all ICAEW members and students, to the highest standards of professional competency and conduct.
We promote inclusivity, diversity and fairness and we give talented professionals the skills and values they need to build resilient businesses, economies and societies, while ensuring our planet’s resources are managed sustainably.
ICAEW is the first major professional body to be carbon neutral, demonstrating our commitment to tackle climate change and supporting UN Sustainable Development Goal 13.
ICAEW is a founding member of Chartered Accountants Worldwide (CAW), a global family that connects over 1.8m chartered accountants and students in more than 190 countries. Together, we support, develop and promote the role of chartered accountants as trusted business leaders, difference makers and advisers.
We believe that chartered accountancy can be a force for positive change. By sharing our insight, expertise and understanding we can help to create sustainable economies and a better future for all.