UK GDP Growth Slows to 0.4% in Q1


The British economy expanded 0.4 percent on quarter in the first three months of 2016, slowing from a 0.6 percent growth in the previous period and in line with market expectations, preliminary figures showed. The services sector led the expansion industrial production, construction and agriculture shrank.

Services increased 0.6 percent, contributing 0.50 percentage points to growth. This followed an increase of 0.8 percent in the previous period. There were gains in all 4 of the main services aggregates (distribution, hotels and restaurants; transport, storage and communication; business services and finance; government and other services). Growth in business services and finance slowed to 0.3 percent from 0.7 percent and was the main reason behind the reduction in services growth between the 2 quarters. 

There was a downward contribution (0.05 percentage points) from the production industries; these industries contracted 0.4 percent, with mining and quarrying decreasing by 2.2 percent following the same decrease in Quarter 4 2015 and manufacturing decreasing by 0.4 percent following a rise of 0.1 percent in Quarter 4 2015. Partially offsetting these decreases was a rise of 2.0 percent in water and waste management following an increase of 0.9 percent in Quarter 4 2015 and a rise of 0.4 percent in energy supply following a decrease of 2.2 percent in Quarter 4 2015. 

There was a downward contribution (0.05 percentage points) from construction; this industry fell by 0.9 percent. This follows an increase of 0.3 percent in Quarter 4 2015. In addition, the agricultural sector contracted 0.1 percent. 

Year-on-year, the economy advanced 2.1 percent, the same as in the previous period and higher than market expectations of a 2 percent expansion.

UK GDP Growth Slows to 0.4% in Q1


ONS | Joana Taborda | joana.taborda@tradingeconomics.com
4/27/2016 10:24:17 AM