The UK economy rebounded marginally in January, according to data released today (Wednesday March 13).
The Office for National Statistics (ONS) said national output, as measured by gross domestic product (GDP), had been supported by expansion in the service and construction sectors and had increased for only the second time in the past seven months, which saw a marginal growth of 0.2% in January following a fall of 0.1% in December.
January’s growth is largely credited to the services sector including hospitality which currently contributes £93 billion each year to the economy employing over 3.5 million people. UK hospitality CEO Kate Nicholls taking to social media said “Positive signs of growth – underlining the importance of services sector and particularly hospitality and retail to the economy”
Responding to the latest 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.”
