UK Q1 GDP Growth Disappoints
The British economy expanded a weaker-than-expected 0.3 percent on quarter in the first three months of 2015, hurt by a slowdown in business, financial services and manufacturing and decline in mining and construction.
4/28/2015 10:12:18 AM
It was the weakest growth rate since the last quarter of 2012 when the economy shrank 0.3 percent. Markets were expecting a 0.5 percent expansion in the first quarter.
In the three months to March 2015, services increased at a slower 0.5 percent, contributing only 0.41 percentage points to GDP growth. Expansion in business services and finance slowed to 0.1 percent from 1.3 percent in the previous period. In the fourth quarter services rose 0.9 percent.
There was a downward contribution (-0.01 percentage points) from the production industries which fell by 0.1 percent. Mining and quarrying decreased by 2.1 percent following an increase of 0.8 percent in Quarter 4 2014 and water and waste management declined by 0.5 percent following a rise of 1.1 percent in the previous three months. Partially offsetting these decreases was a rise of 2.5 percent in energy supply following a decrease of 2.6 percent in Quarter 4 2014 and a rise of 0.1 percent in manufacturing following an increase of 0.2 percent in the December quarter of 2014.
Construction output decreased by 1.6 percent, following a fall of 2.2 percent in Quarter 4 2014.
Year-on-year, the GDP rose 2.4 percent.