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.
4/27/2016 10:24:17 AM
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.