ONS revises down UK GDP on spending slump

The ONS has revised its UK GDP growth estimate for the first quarter, down from 0.3% to 0.2%.

ONS revises down UK GDP on spending slump


It blamed consumer facing industries, such as retail and accommodation, which suffered as household spending slowed due to rising prices.

Construction and manufacturing also showed little growth, while business services & finance continued to grow strongly.

“Household consumption was one of the main contributing factors, with growth slowing from 0.7% to 0.3%,” commented Schroders’ senior European economist Azad Zangana.

“However, net trade was also a disappointment, with the balance reducing GDP by 1.4 percentage points.

“The volume of exports fell 1.6% from a very strong 4.6% in the previous quarter. Meanwhile, imports jumped by 2.7%, compared to a 1% fall previously.”




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