The UK economy is no longer in recession after growth was recorded in the first three months of the year.
Economic output went up by 0.6 per cent in the first quarter of 2024.
The UK entered mild recession in the second half of 2023 after the economy contracted over two consecutive quarters.
Growth was led by the services and production sector which off set declines in the construction industry.
Hetal Mehta, head of economic research at St. James’s Place, said: “Today’s UK GDP shows the very mild recession has ended with a bang.
"It’s the first time in nearly three years that the UK has outpaced both the US and Euro area. The Q1 pace is stronger than the 0.4 per cent the BoE was expecting in its Monetary Policy Report published just yesterday – a rate cut in June now would look even more premature.”
Amy Knight personal finance expert at NerdWallet UK said the good news does not make things easier for those struggling with the cost of living.
She said: "Concerns that inflation is proving stickier than expected have led mortgage lenders to up their rates in anticipation of yesterday’s ‘no change’ decision from the Bank of England, which maintained the base rate at 5.25 per cent.
"While some first-time buyers will continue waiting for rates to fall, those in a hurry to get on the property ladder may be forced to stretch their budget even further. It’s hard to hear ‘good news’ about the economy ‘recovering’ if your personal financial situation is still painful."
Charles Hepworth, investment director at GAM Investments said the growth beat the expectations of economists.
He added: "March monthly GDP of +0.4 per cent alone is a blowout number by itself and points to an economy that has quite quickly moved into positive momentum.
"While this is good news, the obvious downside with this is that the Bank of England might be less inclined to cut rates into an economy that is growing faster than expected.
"Inflation and wage growth dynamics will need to slow and slow fast to make a June rate cut a distinct likelihood."
tara.o'connor@ft.com
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