The UK’s gross domestic product (GDP) grew by 0.6% in the second quarter of 2024, according to new data. This marks a slight decline from the 0.7% growth recorded in the first quarter of the year.
On an annual basis, GDP increased by 0.9% compared to the same quarter in 2023.
The services sector was the primary driver of economic growth in the second quarter, expanding by 0.8%. This growth was broad-based across the sector, helping to offset declines in the production and construction sectors, both of which saw output fall by 0.1%.
In terms of expenditure, there were notable increases in gross capital formation, government consumption, and household spending. However, these gains were partially offset by declines in net trade, reflecting ongoing challenges in the global trade environment.
TUC General Secretary Responds to GDP Data
Paul Nowak, General Secretary of the Trades Union Congress (TUC), commented on the latest GDP figures, acknowledging the positive quarterly growth but expressing concern about the broader economic context.
“Quarterly growth of 0.6% is a welcome improvement on the poor performance the country has seen over recent years,” Nowak stated. However, he highlighted that the economy’s annual growth rate of 0.9% remains below the country’s potential, with consumer demand only increasing by 0.2% in the last quarter.
Nowak pointed to the government’s recent initiatives in green industry as a crucial factor in driving future economic growth. The investment in sustainable manufacturing is expected to revitalise UK manufacturing, a sector that has faced significant challenges in recent years.
He also emphasised the importance of rebuilding public services, particularly through increased hiring of teachers and healthcare workers. According to Nowak, these measures will not only strengthen public services but also contribute to the broader economy by enhancing productivity and supporting long-term growth.
Nowak concluded by stressing the importance of enhancing workers’ rights as a key component of economic recovery. He argued that better worker protections would lead to higher productivity and wages, thereby boosting consumer spending and supporting business growth.
