UK Q1 economic growth figures remain unchanged

| May 25, 2011 | 0 Comments

The Office for National Statistics (ONS) has today revealed the UK economy grew by 0.5% in the January to March period – unchanged from the first estimate last month.

The figure is in line with market forecasts but is behind Chancellor George Osborne’s forecast of 0.8%.

The reading suggests the recovery of the UK economy remains sluggish as households remain under pressure from rising inflation, tax hikes and spending cuts.

According to the ONS, household spending contracted by 0.6% on the quarter, the largest fall since the second quarter of 2009 when the economy was in the midst of recession.

However, today’s estimate is only the second reading and the third and final reading will be available next month and could be revised up or down.

Meanwhile, annual growth also remained unrevised at 1.8%.

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