Slowdown confirmed in UK Q1 GDP

The UK’s second estimate of first quarter GDP was unrevised at 0.3 per cent, despite economists hoping for a slight upward revision to 0.4 per cent, according to the Office for National Statistics (ONS).

ONS chief economist Joe Grice said that the unchanged figure reflected “small upwards revisions to production and construction, offset by a downward revision to services”.

Underlying figures showed that industrial production and construction numbers were revised higher to 0.1 per cent and -1.1 per cent. However, these improvements were offset by a downward revision to 0.4 per cent in the service sector’s performance.

While Mr Grice confirmed that growth in the first quarter appears to be weaker than more recent quarters, he also stressed that: “No single quarter's figures should be given undue weight."

The ONS also noted that the UK’s trade deficit was proving to be a significant burden on the economy, as it knocked nearly a whole one per cent off GDP growth in the last quarter.

Sterling tumbled on the back of the news, marching nearly 0.2 per cent lower when compared to the US dollar.