PwC comments on May 2024 ONS GDP data

Commenting on the latest ONS GDP data, Gora Suri, economist at PwC, says:

“UK economic activity picked up once again in the month of March, growing by 0.4%, largely owing to strong growth in the services sector. Though the UK’s short-lived recessionary episode is now firmly in the rear view mirror, the UK economy is just 0.9% larger than it was in March 2022. In per capita terms, it could be said that UK households have seen little meaningful improvement in living standards in the last two years.

“Looking ahead, we expect more robust growth in 2024, after a year of near-zero growth last year. As CPI inflation approaches the Bank of England’s target this summer, this should allow a resurgence in consumer spending, though the lagged effects of previous interest rate hikes may continue to hinder growth.”