United Kingdom: Growth in economic activity decelerates in the first quarter
April 28, 2015
In Q1, GDP expanded a seasonally-adjusted 0.3% over the previous quarter, according to a preliminary estimate released by the Office for National Statistics (ONS) on 28 April. The print slightly undershot the 0.5% increase the market had expected and came in below the 0.6% expansion observed in the previous quarter.
In the first quarter, construction contracted 1.6% over the previous quarter, which was an improvement over the 2.2% decrease observed in the fourth quarter of last year. In addition, industry swung from a 0.2% expansion in Q4 to a 0.1% contraction in Q1, thus decreasing at the steepest rate since Q4 2012. In the first quarter, growth in services decelerated from 0.9% in Q4 to 0.5%, the slowest expansion in almost two years.
In addition, in annual terms, GDP growth decelerated from 3.0% in the fourth quarter to 2.4% in the first quarter, which marked the slowest increase since Q3 2013.
Author: Dirina Mançellari, Senior Economist