Britain’s gross domestic product (GDP) decreased slightly in the period between October and December last year, official figures show.
The Office for National Statistics (ONS) said GDP had fallen by 0.3 per cent following a period of no growth between July and September 2023.
Responding to Office for National Statistics gross domestic product quarterly national accounts, Chancellor Jeremy Hunt said: “Last year was tough as interest rates had to rise to bring down inflation, but we can see our plan is working.
“Inflation has fallen decisively from over 11% to 3.4%, the economy grew in January and real wages have increased for eight months in a row.
“Our cuts to National Insurance will boost growth by rewarding work and putting over £900 a year back into the average earner’s pocket.”
It comes after the quango estimated GDP had risen by 0.2 per cent in January, following a predicted decline of 0.1 per cent in December last year.
At the time, it said a strong month for retail sales helped drive growth in January, with consumers making the most of post-Christmas sales and spending more in supermarkets.
The services sector, which also includes industries like hospitality, culture and leisure, grew by 0.2 per cent during the month and was the largest contributor to the rise in GDP, the ONS estimated.
It was also said to have been helped by improved activity for housebuilders, thanks to new work and repair and maintenance jobs, following a sluggish year for the wider housing market.
GDP per head is the amount of economic output split across the total population and shrank by 0.7 per cent in 2023, according to the ONS.
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