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The British economy is growing at its slowest pace in more than 5 years

"While the snow had some impact on the economy, particularly in construction and some areas of retail, its overall effect was limited with the bad weather actually boosting energy supply and online sales," Rob Kent-Smith, the ONS' head of national accounts said in a statement.

  • UK economy grows at its slowest rate in more than five years at the start of 2018.
  • GDP grew by just 0.1% in the quarter, according to the Office for National Statistics.
  • Britain was hit by a combination of "weaker manufacturing growth, subdued consumer-facing industries and construction output falling significantly," the ONS said.

LONDON — The British economy grew at its slowest quarterly rate in more than five years at the start of 2018, according to a preliminary estimate from the Office for National Statistics released on Friday.

Gross domestic product — the most widely used measure of economic growth — increased just 0.1% in the quarter. Growth in the final quarter of 2017 was 0.4%.

2018's first GDP figure is the lowest reading for the UK economy since it contracted in the fourth quarter of 2012. That contraction followed the end of the London 2012 Olympics, which had significantly boosted the economy in the previous quarters.

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On an annual basis, the ONS said that the economy grew 1.2% compared to the same time last year.

“Our initial estimate shows the UK economy growing at its slowest pace in more than five years with weaker manufacturing growth, subdued consumer-facing industries and construction output falling significantly," Rob Kent-Smith, the ONS' head of national accounts said in a statement.

"While the snow had some impact on the economy, particularly in construction and some areas of retail, its overall effect was limited with the bad weather actually boosting energy supply and online sales."

The biggest downward pressure on the economy in the quarter, the ONS said, was a sharp fall in construction output, something that was impacted heavily by the colder than normal weather and large amounts of snow seen in the first three months of 2018.

Construction output fell 3.3% as projects were halted during the snow, knocking as much as 0.2% off the UK's overall GDP reading.

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Chancellor Philip Hammond was quick to blame the snow, saying: "Today's data reflects some impact from the exceptional weather that we experienced last month, but our economy is strong and we have made significant progress."

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