UK takes first steps out of recession as economy returns to growth in January

The UK economy grew slightly in January after dipping into recession in the last quarter, according to the Office for National Statistics.

Gross domestic product (GDP) is estimated to have risen by 0.2% in January, following a decline of 0.1% in December, the Office for National Statistics (ONS) said.

A strong month for retail sales helped drive growth in January, as well as improved activity for housebuilders following a downturn in the housing market.

Commenting on today’s GDP figures for January, ONS Director of Economics Statistics Liz McKeown said: “The economy picked up in January with strong growth in retail and wholesaling.

"Construction also performed well with housebuilders having a good month, having been subdued for much of the last year.“These were partially offset by falls in TV and film production, lawyers and the often-erratic pharmaceutical industry.“Over the last three months as a whole, the economy contracted slightly.”

Responding to the latest GDP figures, Chancellor Jeremy Hunt said: “While the last few years have been tough, today’s numbers show we are making progress in growing the economy – part of which makes it possible to bring down national insurance contributions by £900 this coming year.

“But if we want the rate of growth to pick up more we need to make work pay which means ending the unfairness of taxing work twice.”

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