The latest figures show unexpected economic growth in the final quarter of last year.
Commenting on the figures, Subrahmaniam Krishnan-Harihara, Deputy Director of Research at Greater Manchester Chamber of Commerce, said: "That the UK economy grew in Q4 2024 will bring some relief and cheer for businesses. Overall quarterly growth of 0.1% is led by 0.4% growth in the month of December. Growth in the services sector contributed the most to GDP growth. This is unsurprising as consumer spending goes up in the lead up to the festive season. The increase matches the results of Greater Manchester Chamber's Economic Survey for Q4 2024 (QES), which showed that domestic sales and export sales had increased in the quarter - read more here.
“Despite the significant headline growth rate for the month of December, many businesses face cost pressures as they look to the end of the financial year. Greater Manchester Chamber's QES also showed that business confidence had taken a hit primarily because upcoming changes to employment legislation and measures announced in the Autumn Budget in October have created new challenges for business. Some businesses are pausing capital investments while others are considering reducing headcount to manage costs. It is also likely that businesses may put the prices that which they sell their products and services up, which could pose inflationary pressures.
“The message from businesses in Greater Manchester is clear: now is not the time to pile on further cost pressures and compliance challenges for business. Business investment can be unlocked only if businesses are offered a stable and supportive macroeconomic context. Fragile growth seen in Q4 2024 should not be overplayed and the Spring Budget must include measures to give businesses the confidence to invest and expand in the UK.”
The Chamber's latest Quarterly Economic Survey is now open - click here to take part in the survey.