UK economy eked out growth at the end of 2024, figures confirm

The UK economy eked out growth in the final quarter of 2024, unchanged from previous estimates, official figures show.

Gross domestic product (GDP) grew by 0.1% between October and December, following zero growth in the third quarter, according to the Office for National Statistics.

This is unrevised from the ONS’s first estimate – confirming a picture of a sluggish economy over the second half of the year.

It comes after the Government’s budget watchdog halved its forecast for economic growth this year.

The Office for Budget Responsibility (OBR) projected that GDP will grow by 1% in 2025, down from a previous forecast of 2%, thanks to a “lack of recent momentum and waning domestic confidence”.

The most recent data from the ONS shows GDP unexpectedly declined by 0.1% in January.

The contraction came from a weak performance in the manufacturing and construction sectors, partly dampened by poor weather in January.

Nevertheless, the OBR upgraded the growth forecasts it previously set in October for the four years from 2026.

Meanwhile, the ONS said on Friday that real households’ disposable income (RHDI) per person increased by 1.7% in the fourth quarter, up from 0.6% in the previous three-month period.

RHDI measures how much spending power people have from their income and savings, taking into account the effect of inflation.

The figures suggest people had more money to spend at the end of 2024.

The OBR predicted disposable incomes will grow at about 0.5% on average each year between 2025 and 2030.