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UK GDP grew by 0.4% in the first quarter of 2016 marking 13 consecutive months of growth according to the latest figures released by the Office for National Statistics (ONS).

The first estimate of economic growth released by the Government shows that Gross Domestic Product continued to grow, but slowed to 0.4% between January and March, down from 0.6% in quarter 4 2015.  Yearly, the growth recorded was 2.1%, slightly better than economists’ predictions.

These predictions represent the first estimate of economic growth for the period, and they are obtained from the analysis of less than half the data that will be used for the final estimate.

As previously warned by the Bank of England, uncertainty due to the EU referendum might be one of the causes for the slowdown and has been expected by economists.  A decrease in construction output, which went down 0.9% in the first quarter, as well as a decline in the industrial output by 0.4%, are partly responsible for the slowdown.  On a positive note, the service sector, which represents the biggest part of the economy, grew by 0.6%.

Considering the number of negative outside factors currently that have the potential to undermine the economy’s stability, we are pleased to see that figures are still positive.

Posted by Sue Robinson on 29/04/2016