Latest ONS report shows
UK gross domestic product was estimated to have increased by 0.1% in the first quarter of 2018 which is the slowest pace of growth in five years.
Recent bad weather was attributed as the cause for the downturn in construction and high street spending. Overall, household spending grew by 0.2%, the lowest it’s been for three years.
Additionally, business investment decreased by 0.2% which will no doubt highlight concerns over the strength of the UK economy and it’s ability to maintain stability after it leaves the EU.
Rob Kent-Smith of the ONS said:
“Overall, the economy performed poorly in the first quarter with manufacturing growth slowing and weak consumer-facing services.”
Howard Archer, chief economic advisor to the EY ITEM Club, said:
“The UK economy eked out growth of just 0.1% quarter-on-quarter in the first quarter of 2018. This was the weakest growth rate since the first quarter of 2012. It was down from growth of 0.4% quarter-on-quarter in the fourth quarter of 2017 and 0.5% in the third quarter.
“While first-quarter growth was clearly dragged down by the severe weather seen at the end of February and first half of March, the extent of the slowdown suggests an underlying loss of momentum in the economy.
“Year-on-year growth slowed to 1.2% in the first quarter of 2018, which was the weakest level since the second quarter of 2012. It was down from 1.4% in the fourth quarter of 2017, 1.8% in the third quarter and 2.1% in the first quarter.”
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