ICAEW.com works better with JavaScript enabled.

UK takes first step towards exiting recession following January rebound, ICAEW says

Author: ICAEW

Published: 13 Mar 2024

Suren Thiru, Economics Director at ICAEW, responded to the latest UK GDP figures for January 2024, released by the Office for National Statistics today (Wednesday 13 March 2024):

“This rebound in GDP suggests that the UK took its first step towards exiting recession in January as strong retail activity helped boost overall output.

“January’s recovery may have been followed by a more muted performance in February with the significant wet weather likely to have suppressed activity, despite a boost to incomes from lower inflation.

“While these figures suggest the UK is on track to exit recession this quarter, the squeeze from high interest rates and persistent labour shortages may mean that the recovery is more downbeat than the OBR is predicting.

“This data won’t alter the expectation that interest rates will remain on hold this month. With the economy struggling and inflation slowing, the case for loosening policy by the summer is growing.”


Notes to editors:

Contact: ICAEW media office media.office@icaew.com, tom.mackintosh@icaew.com or 07866 853 841