UK GDP Grows 0.4% Beating Expectations

Britain’s economy grew faster than initially thought in the opening months of this year but still suffered a marked slowdown compared to the end of 2014.

The Office for National Statistics said GDP rose 0.4% in the first quarter from the previous three months. That was in line with City economist forecasts after a recent revision to official construction figures showed the sector did not suffer the sharp drop first pencilled in.

The latest growth rate was half the 0.8% recorded in the final quarter of last year, also revised up from a previous estimate of 0.6%.

Analysts said the slowdown in the first quarter would likely prove temporary and highlighted an overall picture of stronger growth, with 2014 as a whole enjoying a 3% rise in GDP – the strongest growth since 2006, before the global financial crisis.

“The economic fundaments look broadly positive for the UK, particularly for the consumer, and we believe growth will be largely healthy through the second half of 2015,” said Howard Archer, economist at IHS Global Insight, forecasting 0.7% growth in the second quarter.

via The Guardian

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