UK Q1 GDP Shows Unrevised 0.3% Fall; Hit By Construction
-UK Q1 Final GDP down 0.3% q/q; down 0.2 y/y
-UK Q1 Current account deficit stg11.179bn vs stg7.228bn Q4
LONDON (MNI) – The UK economy contracted 0.3% on the quarter in the
first quarter, hit by plunging construction output.
The final estimate of Q1 growth showed that on the expenditure side
household spending rose 0.5% on the quarter with government expenditure
up 2.8%. The largest downward effect on the output side came from
construction, which saw output plunge 4.9% on the quarter, knocking 0.4
percentage points off growth.
Stripping out the volatile construction component would have left
first quarter growth just in positive territory.
Back revisions showed 2011 GDP was revised up to 0.8% on 2010 from
0.7%, while Q4 growth was revised down to -0.4% from the previous
estimate of -0.3%.
With Q2 growth widely expected to be negative, with output hit by
the extended holdiay over the Jubilee weekend, the UK economy looks set
to continue in technical recession through the first half of this year.
The Q1 data showed industrial production fell 0.5% on the quarter
and made no contribution to quarterly growth, while manufacturing fell
Services output was up 0.2%, adding 0.1 percentage point to
quarterly GDP growth.
–London newsroom: 44 20 7862 7491; email: firstname.lastname@example.org
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