Construction showing promise in 2024 as UK economy continues to grow

The UK economy saw a glimmer of hope earlier this year, as official figures released by the Office for National Statistics (ONS) indicated a return to growth after a period of recession. Gross Domestic Product (GDP), the measure of everything produced in the UK, rose by 0.2%, marking the first official economic growth announcement since the recent recession was declared. This recession was declared after two successive three-month periods of negative economic growth.

The growth observed in January offers a glimmer of optimism, potentially indicating that the recession could be the shortest in UK history, should this trend continue into February and March. A significant contributor to this growth was the customer-facing services industry, which expanded by 0.2% in January. Services constitute a substantial portion of the UK economy, accounting for four-fifths of total output.

Construction also showed promising signs, with a notable 1.1% increase in output over the month. Housebuilders, in particular, experienced a resurgence after a subdued performance in the preceding year.

Despite these mixed indicators, there is cautious optimism fueled by strong retail sales reported in January, hinting at a potential rebound in consumer spending.

It's worth noting that the data provided by the ONS is preliminary and subject to revision. Figures are routinely reassessed as more information becomes available. As such, there remains a possibility that the recession could be revised out of existence when the ONS releases its February GDP figures and reevaluates economic performance.

In conclusion, while the January figures offer a glimpse of recovery for the UK economy, challenges persist, and the road to full recovery may take some time. Property continues to be the best option for those looking to invest in the UK, and with a fast-growing rental market currently driving up prices, now is a great time to get onboard.