UK Q1 economic growth figures remain unchanged

| June 28, 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 previous two estimates.

In the meantime, annual growth was revised down to 1.6% from 1.8%.

The growth, albeit slow, expanded primarily due to exports, with net trade contributing 1.4% points to growth – the highest in more than 30 years as sterling’s depreciation makes UK goods competitive.

Meanwhile, today’s figure from the ONS is the third and final reading for quarter one GDP and the growth figure for the April to June period will be available next month.

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

Finally, the figures are likely to lead the Bank of England’s Monetary Policy Committee to keep interest rates at the record low of 0.5% for the remainder of 2011.

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