IoD: Strong GDP growth in Q1 marks a clear end to the recession

Commenting on ONS data, which showed that GDP grew by 0.4% in March 2024 and by 0.6% across the first quarter of 2024, Dr. Roger Barker, Director of Policy at the Institute of Directors, said:

“The latest statistics for GDP growth are better than expected and suggest that a meaningful recovery in the economy may be underway. Both the services sector and the production sector were strong in the first quarter, growing by 0.7% and 0.8% respectively. The main area of continued weakness was construction, which contracted by almost 1%.

“Both the quarterly and monthly GDP figures paint an encouraging picture. Based on this evidence, there is no doubt that that the spectre of recession is fading fast, and the economy is starting to move forward again. This assessment is supported by the IoD’s latest survey findings from its members, which suggest that business confidence is improving.

“However, it would be premature to argue that the economy has definitively turned the corner. Although there are welcome signs of green shoots, any recovery is still at an early stage and it is likely to be fragile. As a result, there is still a compelling case for the Bank of England to cut interest rates at its next meeting on 20 June.”