Economy grows 0.8% in Q1

THE economy grew by 0.8% in the first quarter, up on 0.7% in the final three months of last year.

The Office of National Statistics (ONS) said output increased in three of the four main industrial groupings within the economy.

Services saw growth of 0.9%, production was up 0.8% and construction grew by 0.3%. However, output decreased by 0.7% in agriculture.

GDP was 3.1% higher in the first quarter than in the same period a year ago.

The ONS added: “There was some evidence to suggest construction output was affected by the storms and high rainfall in January and February. However, over the quarter, the storms have not had a significant impact on GDP growth in Q1 2014 and ONS has not classified them as a statistical special event.”
 
Business welcomed today’s announcement, claiming the increase offered further evidence of recovery.

Tim Pile, president of Birmingham Chamber of Commerce said:  “Today’s GDP figure gives us a reason to be optimistic as we move further into 2014.   

“Other indicators such as inflation and unemployment are also moving in the right direction and this could mean a possible interest rate rise is now on the horizon, which has been kept to a record low of 0.5%.

“The British Chambers of Commerce upgraded its GDP forecast to 2.7% for 2014, which is a significant and welcome move.”