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U.K. economy grows 0.4% in Q1, business investment unexpectedly falls

Published 26/05/2016, 09:31
© Reuters.  U.K. quarter-on-quarter growth remains at 0.4%; annualized growth revised down

Investing.com - The U.K. economy grew in line with preliminary estimates in the first three months of the 2016, in line with expectations, although business investment unexpectedly fell, data showed on Thursday.

In a report, the Office for National Statistics said gross domestic product (GDP) expanded by a seasonally adjusted 0.4% in the first quarter, unchanged from an initial estimate and in line with expectations. The U.K.’s economy grew by 0.6% in the preceding quarter.

Year-over-year, U.K. economic growth grew 2.0% in the three months ended March 31, worse than forecasts that had expected no changes from the preliminary reading of 2.1%. The U.K. economy expanded at an annualized rate of 2.1% in the fourth quarter of 2015.

Meanwhile, business investment unexpectedly fell by a seasonally adjusted 0.5% in the first quarter. Analysts had expected a gain of 0.1%. That followed a decline of 2.0% in the preceding quarter.

Additionally, the index of services in the U.K. rose 0.6%, in line with consensus and after a prior gain of 0.8%, which was revised up from an initial reading of a 0.8% advance.

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