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UK Economic Growth Slows to 0.2%
Released 04/23/2010 |
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GDP grew by 0.2% between January and March, the Office for National Statistics (ONS) said. That was weaker than the 0.4% growth predicted by many economists, but the figure may be revised. The last quarter of 2009 saw GDP growth of 0.4% - revised up from an initial estimate of 0.1%. The ONS said the bad weather seen at the beginning of the year may have had an impact on output - particularly in the retail and industrial sectors. But despite that, manufacturing output grew by 0.7% over the quarter, while the utilities sector saw output rise by 2.5%. Manufacturing boost However, the bulk of growth came from the financial and business services sector, which saw growth of 0.6%. Meanwhile the sector including retail, hotels and restaurants shrank by 0.7%. But Trevor Williams, chief economist at Lloyds TSB, warned that the growth could equally be revised lower. "The economy is still recovering," he told the BBC. "The declines of 2008 are still having an impact [and] the recovery will remain rather weak and could disappoint." The Institute of Directors, which represents business leaders, also said it expected the recovery in the economy to "look much more L than V-shaped". The British Chambers of Commerce added that the new figures underlined the challenges still facing the economy. "It is important for policy-makers to focus on ensuring that the recovery continues and a double-dip recession is avoided," said the business group's chief economist David Kern. |
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