UK economy grows by 0.2 pct in January: ONS

LONDON -- Real gross domestic product (GDP) of the United Kingdom (UK) is projected to expand by 0.2 percent in January on a monthly basis, rebounding from a contraction in December 2023, according to the Office for National Statistics (ONS) on Wednesday.

The service sector emerges as the primary driver of this growth. According to the ONS, service output increased by 0.2 percent month on month, bouncing back from a 0.1 percent decline in December 2023.

The construction output saw a growth of 1.1 percent, following a decline of 0.5 percent in December 2023. However, production output experienced a decrease of 0.2 percent in January 2024 after a 0.6 percent increase in December 2023.

In January, the economy saw growth in the retail and wholesaling sectors. Construction also demonstrated good performance, particularly among housebuilders, marking a notable improvement after a subdued performance for much of the previous year, said Liz McKeown, director of Economic Statistics at the ONS.

Despite this positive monthly growth, GDP is estimated to have decreased by 0.3 percent in January 2024 compared to the same period in 2023.