United Kingdom GDP

United Kingdom

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.

In its latest inflation report from February, the Bank of England projects that the economy will grow 2.9% in both 2015 and 2016. FocusEconomics Consensus Forecast panelists expect the economy to grow 2.6% in 2015, which is unchanged from the previous month’s estimate. The panel sees GDP expanding 2.4% in 2016.

Author:, Senior Economist

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United Kingdom GDP Chart

United Kingdom GDP Q1 2015

Note: Quarter-on-quarter changes of seasonally adjusted GDP and year-on-year variation in %.
Source: Office for National Statistics (ONS) and FocusEconomics Consensus Forecast.

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