In the final quarter of 2024, the UK economy registered an unexpected expansion, growing by 0.1% between October and December. This growth, albeit modest, was primarily fueled by significant contributions from the construction and services sectors. While many anticipated a decline, the UK's economic performance surprised analysts with its resilience during this period.
The construction sector emerged as a pivotal player in driving this growth. Alongside it, the services sector bolstered the economy with notable performances from pubs, bars, and machinery manufacturers, all experiencing a strong December. These industries collectively underpinned the economy's positive trajectory despite facing challenges in other areas.
However, the growth was not as robust as some had hoped. Weak performance in trade for computer programming, publishing, and car sales businesses somewhat offset the gains made by construction and services. These sectors experienced sluggish months, dampening the overall economic momentum.
The 0.1% increase, though relatively small, serves as a testament to the diverse range of industries that contributed to the UK's economic resilience. The surprising growth was propelled by a combination of factors, including a particularly strong December for various sectors. This unexpected economic uptick highlights the adaptability and strength of the UK economy amidst mixed market conditions.