ONS to issue final estimate of Q1 growth tomorrow

The Office for National Statistics (ONS) is tomorrow expected to leave its estimate of GDP in the January to March unchanged at 0.3%.

Gross Domestic Product (GDP), a key measure of economic growth, is closely watched by economists as an indication of the health of the economy.

The figures were due to be released last month but due to a “potential error”, the data was delayed.

According to the ONS, the unusual move was caused by concerns over the reliability of some of the data.

Meanwhile last week, the National Institute of Economic and Social Research (NIESR) forecast that the UK economy expanded by 0.7% in the three months to the end of June.

Official figures for the second quarter growth will be published on 23 July but the think tank believes most of the growth occurred over April and May.

However, growth is expected to fall back over the latter half of the year as austerity measures kick in – introduced to deal with Britain’s record deficit of £155 billion.

Many economists have previously said that the Government’s massive spending cuts could pose a threat to the economic recovery.

The NIESR said: “Unfortunately, the UK economy does face headwinds. Fiscal consolidation both in the UK and the euro area will restrict growth in the short-term and there is clearly a risk that this rate of growth will not be maintained through the rest of this year.”

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