Gross domestic product (GDP) was expected to grow by 0.6% in the first quarter of 2024, but slightly surpassed this despite a 0.3% decline in the previous quarter.
While GDP showed no growth in April, Q1 saw a 0.7% increase, 0.3% higher than the same quarter in 2023 and the strongest growth in two years. Production was predicted to rise by 0.8% in Q1, but a slight dip in the manufacturing sector limited it to 0.6%.
Despite this, seven of the 13 subsectors experienced growth. However, the manufacturing of transport equipment subsector, which updated its monthly business survey data, held back the sector overall.
Services output increased by 0.8% for the first time since Q1 2023, initially predicted to grow by 0.7%. The most influential sector was scientific research and development (R&D), which experienced significant growth of 7.2%.
Ten of the 14 services subsectors grew, but the financial services sector dipped by 0.03% over the quarter. Construction continues to struggle, with a 3.8% decline in new work being the largest contributing factor. Construction was predicted to fall by 0.6% in Q1, though initially expected to drop by 0.9%.
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