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MNI BRIEF: UK March Growth Slows As Test & Trace Ends

(MNI) London
(MNI) London

Growth slows in March as Covid spending by the government decreases and impact of war weighs on economy.

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UK GDP rose by 0.8% in the opening months of the year, higher despite a 0.1% decline in March output. That takes output 0.7% above Q4 2019 -- the best quarterly measure of pre-pandemic growth, the Office for National Statistics said Thursday. Services expanded by a much-lower-than expected 0.4% in Q1, well below the 0.8% predicted by City economists, contributing 0.36 percentage points to quarterly GDP. Manufacturing rose by 1.3%, while construction jumped by 3.8%.

On the expenditure side, consumption rose by 0.6%, adding 0.33 percentage points to growth. Business investment declined by 0.5%, while government spending fell by 1.7%. Net exports subtracted a whopping four percentage points from quarterly growth. Output declined by 0.1% in March, a bit below expectations, while February growth was revised to zero from the previously-reported 0.1% gain.

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UK GDP rose by 0.8% in the opening months of the year, higher despite a 0.1% decline in March output. That takes output 0.7% above Q4 2019 -- the best quarterly measure of pre-pandemic growth, the Office for National Statistics said Thursday. Services expanded by a much-lower-than expected 0.4% in Q1, well below the 0.8% predicted by City economists, contributing 0.36 percentage points to quarterly GDP. Manufacturing rose by 1.3%, while construction jumped by 3.8%.

On the expenditure side, consumption rose by 0.6%, adding 0.33 percentage points to growth. Business investment declined by 0.5%, while government spending fell by 1.7%. Net exports subtracted a whopping four percentage points from quarterly growth. Output declined by 0.1% in March, a bit below expectations, while February growth was revised to zero from the previously-reported 0.1% gain.

Keep reading...Show less