UK GDP Growth Holds at 0.1% in Q4 2024

The UK’s real gross domestic product (GDP) increased by 0.1% in the fourth quarter of 2024 (October to December), unchanged from the initial estimate.

Among the eight quarters subject to revision, GDP growth remained the same in five, while growth for Q4 2023 to Q2 2024 was revised upward by 0.1 percentage points.

Services and Construction Rise, Production Falls

In Q4 2024, the services sector grew by 0.1%, and construction output increased by 0.3%, helping support overall economic activity. However, this was offset by a 0.4% decline in production output, reflecting continued weakness in manufacturing and related industries.

2024 GDP Growth Revised to 1.1%

For the full year, real GDP growth in 2024 was revised up to 1.1% from the previous estimate of 0.9%. This follows a 0.4% increase in 2023, which remained unchanged. The report incorporates updated data revisions from Q1 2023 through Q4 2024, reflecting more accurate trade figures for both goods and services.

GDP Per Capita Dips, Household Shows Strong Gains

GDP per capita fell by 0.1% in Q4 2024, consistent with earlier estimates. For the year as a whole, GDP per capita showed no growth, a slight improvement from the initial projection of a 0.1% decline.

Real household disposable income (RHDI) per capita rose by 1.7% in Q4 2024, marking a strong rebound from 0.6% growth in Q3. At the same time, the household savings rate increased to 12.0%, up from 10.3% in the previous quarter, suggesting improved financial resilience among UK households.

Source: Office for National Statistics