United Kingdom: Economy decelerates in the first quarter
April 29, 2016
In the first quarter, GDP expanded a seasonally-adjusted 0.4% over the previous quarter, according to a preliminary estimate released by the Office for National Statistics (ONS) on 27 April. The print was slightly down from the 0.6% increase recorded in the previous quarter.
In the first quarter, the agricultural sector deteriorated from a 0.3% expansion in the fourth quarter to a 0.1% contraction. Moreover, the construction sector contracted 0.9% on a sequential basis, which contrasted the 0.3% increase tallied in the previous quarter. Conversely, the service sector expanded 0.6% in the first quarter, thus positively contribution to Q1’s growth. Nevertheless, Q1’s expansion in the service sector was slower than the 0.8% increase observed in the previous quarter.
In annual terms, GDP expanded 2.1%, which met the previous quarter’s growth and remained at the lowest reading since Q1 2013.
Author: Dirina Mançellari, Senior Economist