UK Growth Worst in Over Five Years; Snow....>

UK DATA: UK Growth Worst in Over Five Years; Snow Impact "Limited" 

-UK Q1 GDP Growth +0.1% q/q; +1.2% y/y 

-UK Feb Index of Services -0.2% m/m; +0.4% 3m/3m; +1.3% y/y  

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Q1 GDP growth came in well below BoE and market expectations, 

falling to 0.1% q/q - the lowest since Q4 2012. The 0.3pp drop in q/q 

growth was attrbiuted to weakness across the mfg and construction 

sectors, as well as in consumer-facing industries. While the snow had 

"some impact" over Q1, the ONS described it as "limited" and "relatively 

small", suggesting the data alluded to an underlying trend of weakeness. 

There was no evidence of a snow impact in the manufacturing sector while 

half of the drop in construction output was concentrated in January, 

after December's sharp rise and before the Feb/Mar snow. For the month 

of March, the ONS forecast both Services and IOP to grow by 0.1% m/m and 

construction to fall 2.3% m/m.