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| UK growth hit by trade deficit and services slowdown | UK growth hit by trade deficit and services slowdown |
| (35 minutes later) | |
| The UK economy grew 0.3% in the first quarter of 2015, official figure have confirmed, with growth hit by rising imports and a service sector slowdown. | The UK economy grew 0.3% in the first quarter of 2015, official figure have confirmed, with growth hit by rising imports and a service sector slowdown. |
| The 0.3% growth figure marked a sharp slowdown from the 0.6% rate seen in the final three months of last year. | The 0.3% growth figure marked a sharp slowdown from the 0.6% rate seen in the final three months of last year. |
| The services sector, which represents three-quarters of UK output, grew by 0.4%, the weakest rate since 2012. | The services sector, which represents three-quarters of UK output, grew by 0.4%, the weakest rate since 2012. |
| In addition, the trade deficit widened from £9.6bn in the fourth quarter of 2014 to £13.2bn in the first quarter. | In addition, the trade deficit widened from £9.6bn in the fourth quarter of 2014 to £13.2bn in the first quarter. |
| Net trade knocked 0.9 percentage points off the GDP rate. | Net trade knocked 0.9 percentage points off the GDP rate. |
| The lack of revision to the 0.3% growth figure came as a surprise as most analysts had expected the Office for National Statistics' initial estimate to be revised up to 0.4%. | The lack of revision to the 0.3% growth figure came as a surprise as most analysts had expected the Office for National Statistics' initial estimate to be revised up to 0.4%. |
| The Bank of England has said that it expects the first quarter growth rate to be revised up to 0.5% once final data is available. | The Bank of England has said that it expects the first quarter growth rate to be revised up to 0.5% once final data is available. |
| Momentum 'understated' | |
| The ONS figure confirms that the first three months of the year saw the lowest quarterly growth for two years, after strong growth in 2014. | |
| However, David Kern, chief economist at British Chambers of Commerce, the GDP figures "understates the true momentum in the economy". | |
| "When you dive into the detail, there is a mixed picture", he said, as production and construction figures have been revised up, while the trade deficit has widened. | |
| David Tinsley, an economist at UBS, said the unrevised headline growth figure of 0.3% was "a little disappointing". | |
| "Going forward we would expect some strengthening in performance, with the service sector regaining some traction," he added. |