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UK GDP rises 0.1%

• Posted by currencies in Bank of England, Brexit, Currency, Dollar, Economy, EUR, GBP, Sterling, UK, Uncategorised
• May 25, 2018
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Q1 Gross Domestic Product in the UK increased 0.1% in the second estimate, the Office for National Statistics announced this morning. This is unchanged from 0.1% quarter-to-quarter rise reported in the preliminary estimate.

Comparing this to a year ago, the UK GDP increased 1.2% y/y, unchanged from the estimate.

Within the structure on Q1 GDP, household spending grew by 0.2% over the quarter while business investment decreased by 0.2%, the ONS said in the report.

From the sectoral point of view, services industries increased by 0.3% Q/Q; while construction decreased 2.7% Q/Q.

Earlier this month the BoE cast doubt on the ONS’ view that the economy’s weak start to the year was not mainly a result of heavy snow.

Despite the Bank of England’s doubts, Britain’s Office for National Statistics (ONS) stuck to its view that bad weather alone could not explain why the economy grew just 0.1 percent between January and March, as expected. Instead, the ONS said it saw a longer-term pattern of slowing growth.

BoE Governor Mark Carney has said business investment in Britain would normally be growing much more strongly, given the recovery in the world economy, and was being held back by uncertainty about Brexit.

Britain’s economic growth rate was overtaken by other economies last year as a rise in inflation caused by the pound’s post-Brexit vote plunge in 2016 squeezed consumers’ budgets.

The BOE has pencilled in a quarterly growth of 0.4 percent for the current April to June period.