**MNI 5 THINGS: UK Q1 GDP Unrevised On Updated March Data

By Jamie Satchithanantham, Laurie Laird

     **LONDON (MNI) - The following are the key points from the ONS' March short

term indicators pack published Friday by the Office for National Statistics.

     - A slight upward revision to construction output over Q1 was offset by a

marginal downward revision to production, leaving Q1 GDP growth, measured by

output, unchanged to one decimal place. The ONS was unable to provide the

updated GDP index values following these changes, which will only be published

at next month's second estimate.

     - However, the Office for National Statistics estimated service sector

growth at 0.1% in the month of March, which could be subject to downward

revision, given the devastating effect of snowy weather on retail sales and

distribution in the final month of the quarter.

     - Net trade exerted a positive influence on first quarter GDP growth. On a

current prices basis, net trade will likely add 0.1pp to Q1 growth. Some

analysts had pencilled in a net trade Q1 drag, like in Q4, so this represents

somewhat of a positive data surprise.

     - Manufacturing output has now fallen for two consecutive months following

a flat January and eight straight months of growth in 2017 -- the strongest run

since 1968. Declining car production continues to weigh on the manufacturing

sector, with output of transport equipment slumping by 1.9% between February and

March.

     - The collapse of construction giant Carillion, primarily focussed in

public sector contracts, likely showed up predominantly in the weaker 'public

other new work' channel within the construction data -- down 8.8% m/m in

January, down 1.1% m/m in February and down 3.0% m/m in March.

--MNI London Bureau; tel: +44 203-586-2225; email: les.commons@marketnews.com

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