Growth slows in Q1, official figures say

GROWTH slowed in the first quarter of 2015, according to latest figures.

The Office for National Statistics said GDP is estimated to have increased by 0.3% in the three months to the end of March compared with growth of 0.6% in Q4, 2014.

Output increased in services by 0.5% in Q1. The other three main industrial groupings within the economy decreased, with construction falling by 1.6%, production by 0.1% and agriculture by 0.2%.

However, GDP was 2.4% higher in Q1 compared with the same quarter a year ago.

In Q1, GDP was estimated to have been 4% higher than the pre-economic downturn peak of Q1 2008. From the first three months of 2008 to the trough in Q2 2009, the economy shrank by 6%.

The figures will make disappointing reading for the Conerservatives and George Osborne especially, as the party enters the final week of campaigning before the General Election.

Only last week, Mr Osborne had pledged 160,000 new jobs for the West Midlands should the party be re-elected.

Commenting, Kevin Caley, managing director of peer-to-peer business lender ThinCats said: “This morning’s GDP figures were expected and don’t show any significant shifts. However, in comparison with European counterparts, like Germany and France, the UK’s growth rate is outperforming.

“Despite this, to boost growth and kick-start more forward economic momentum requires a real focus on improving the UK’s investor appeal. Initiatives like the proposed peer to peer ISA will do this whilst also enhancing the pool of funds available to UK SME’s.”

Louise Bennett, chief executive of the Coventry and Warwickshire Chamber of Commerce, said: “It is positive news the economy is continuing to grow, but the slight dip in growth on the  previous quarter highlights the need for the next government to put business and job  creation at the top of their priorities – not an afterthought.

“The slight slowing in growth should not be a reason to panic, but should act as a reminder that there is no room for complacency and the incoming government will need to increase its efforts to support businesses to trade both domestically and internationally.”