Final data published by the Office for National Statistics (ONS) showed that GDP increased by 0.1% in the 4th quarter after remaining unchanged in the 3rd quarter. Economists also expected the economy to expand by 0.1%. On an annual basis, GDP growth accelerated to 1.5% from 1% in the 3rd quarter. Consensus estimates suggested GDP growth of 1.4%. Real annual GDP in 2024 is now estimated to have increased by 1.1%, revised up from the first estimate increase of 0.9%, this follows an unrevised increase of 0.4% in 2023.
The ONS said that in the 4th quarter, the services output increased by 0.1% in the 4th quarter (revised from +0.2%). Services output is estimated to have increased by 1.9%, compared with the same quarter a year ago. Non-consumer-facing services (business-facing services) increased by 0.1% in Q4 (revised from +0.2%), while consumer-facing services showed no growth (revised from +0.1%). The services sector increased by 1.5% across 2024, with non-consumer-facing services increasing by 1.9% and consumer-facing services declining by 0.3%. The production sector is estimated to have fallen for the third consecutive quarter, with a 0.4% decline in the 4th quarter (revised from -0.8%). Production output is estimated to have fallen by 1.1%, compared with the same quarter a year ago, and fell by 1.2% for 2024 as a whole. Manufacturing output fell by 0.6% in Q4 (previously a 0.7% fall), and there was no growth across 2024 as a whole (revised up from a 0.7% fall). Construction output is estimated to have grown by 0.3% in the 4th quarter (previously a 0.5% increase), following a 0.4% increase in the previous quarter. The level of construction output was 0.9% higher in the 4th quarter compared with the same quarter a year ago, and increased by 0.5% in 2024 (revised up from 0.4%).
The data also showed that real household expenditure increased by 0.1% in the 4th quarter, revised up from the first estimate of no growth. Within household consumption, increases in restaurants and hotels, and housing, were partially offset by declines in food and drink, and education. Household consumption is estimated to have increased by 0.6% across 2024.