Economic growth rate weakens

GROWTH in the economy weakened in the first three months of this year, official figures said.

The Office for National Statistics’ official estimate of activity showed the rate of UK GDP growth slowed from 0.6% to 0.3% in the first quarter of 2015.

While service sector output increased by 0.5% in the three months to March 31, from the previous quarters, the other three main industrial sectors fell: construction dropped 1.6%, production dipped 0.1%, and agriculture was down 0.2%.

Chancellor George Osborne said on Twitter: “Good news economy continues to grow but this is a critical moment & reminder you can’t take recovery for granted.  GDP figures show future of the economy is on the ballot paper. We should stick to the plan that’s delivering a brighter more secure future.

“With rising instability abroad, now is worst possible time to vote for instability at home.”

Danny Alexander, chief secretary to the Treasury, told the BBC that the slowdown in UK GDP, shows: “as a country, we’ve still got a lot of work to do to secure our recovery”.
 
Jeremy Cook, chief economist at the international payments company, World First, said: “Q1 2015 was the slowest three month period of growth in the UK since the last quarter of 2012.

“Industrial and manufacturing numbers from the UK economy through January and February have been poor and for once, the services sector has not been able to make up that deficit. That, in itself, is worrying.

“Q1 should have seen stronger household consumption, with lower energy and fuel bills helping the pockets of average consumers. Wages are rising in real terms and unemployment is falling. To have the slowest level of service sector growth in over 2.5 years is quite confusing.”