The Brexit slowdown is officially here — UK GDP grows less than expected in Q1

pulse

May 16, 2017 8:34 AM

The ONS released the first estimate of GDP growth for the first quarter of 2017 on Friday.

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LONDON — Britain's economy grew less than expected in the first quarter of 2017, according to preliminary numbers from the ONS released on Friday.

GDP grew by just 0.3% in the quarter, while on an annual basis the figure was 2.1%.

Prior to the release economists had forecast 0.4% growth, representing a slowdown from the 0.7% figure seen in the final quarter of 2016, a number that beat all expectations. Yearly growth was forecast at 2.2%.

"Many of the significant negative contributions in the services industries in Quarter 1 2017 came from consumer-focused industries, such as retail trade; accommodation; and the trade and repair of motor vehicles, which all decreased when compared with the previous quarter," the ONS said.

Writing shortly after the data was released, Samuel Tombs,

"The consumer-driven slowdown begins."

Britain's previously sluggish manufacturing sector was actually the best performing part of the economy in Q1, growing 0.5%, thanks to a big rise in the manufacture of motor vehicles.

Despite disappointing in the quarter, UK GDP has now grown in 17 consecutive quarters. The last time UK GDP shrunk over a quarter came in Q4 of 2012 when the economy readjusted to normality following a huge boost from the 2012 Olympic Games in London.

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