The UK’s professional services sector has established itself as a crucial catalyst for economic growth in 2024, demonstrating remarkable resilience whilst other sectors face mounting challenges. Official data reveals the sector achieved a 0.7 per cent growth in the third quarter, making the largest contribution to overall economic expansion despite broader economic growth slowing to 0.1 per cent.
The sector, encompassing law, architecture, research and development, consultancy, and market research, registered an impressive 3.9 per cent growth in the three months to September compared to the previous year’s final quarter. This growth rate significantly outpaced the overall UK economy’s 1.3 per cent expansion, highlighting the sector’s vital role in supporting economic stability.
Scientific research and development has emerged as the standout performer within professional services, while legal activities continue to demonstrate robust growth. The UK’s legal industry, second only to the US globally, benefits substantially from its international recognition and the widespread adoption of English law in commercial contracts worldwide.
The architectural sector has shown particularly strong performance, with the Royal Institute of British Architects reporting a 13 per cent increase in revenue from chartered practices, exceeding £4 billion for the first time. International revenue growth proved especially notable, rising 25 per cent to reach £1 billion.
The sector’s success extends beyond domestic markets, with services exports showing a 13 per cent increase compared to pre-pandemic levels, whilst goods exports declined by 24 per cent over the same period. This performance underscores the UK’s growing specialisation in professional services and its importance to the nation’s economic resilience.
Labour’s Chancellor Rachel Reeves has pledged to lead the most “pro-growth” Treasury, though recent surveys indicate corporate sentiment fell to a 13-month low in November. Despite these challenges, the professional services sector’s continued growth suggests it will remain a crucial driver of UK economic recovery and international competitiveness.
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