UK GDP Growth Confirmed at 0.3%

The British economy expanded 0.3 percent in the first three months of 2015 matching preliminary estimates but slowing from a 0.6 percent rise in the previous period. Second estimates released by the Office for National Statistics showed a drop in exports and higher imports weighted down on growth.

Exports contracted 0.3 percent, following a 4.6 percent surge in the last three months of 2014. In contrast, imports rose at a faster 2.3 percent from 1.6 percent in the previous period. The trade balance deficit widened from £9.6 billion in Quarter 4 2014 to £13.2 billion in Quarter 1 2015.

Gross fixed capital formation rose 1.5 percent, rebounding from a 0.6 percent drop and business investment was estimated to have risen by 1.7 percent. Household spending slowed to 0.5 percent (0.6 percent in Q4) and government spending increased 0.6 percent, recovering from a 0.2 percent fall. Non-profit institutions serving households’ final consumption rose by 2.6 percent, following a 3.2 percent fall in Q4.

Year-on-year, the economy expanded 2.4 percent, unrevised from the preliminary estimate. 

UK GDP Growth Confirmed at 0.3%

ONS | Joana Taborda |
5/28/2015 10:20:57 AM