UK GDP grew slightly more than expected in Q1

Office for National Statistics said that UK gross domestic product (GDP) in volume terms was estimated to have increased by 0.5% in Quarter 1 (Jan to Mar) 2019 having slowed to 0.2% growth in the previous quarter.

In comparison with the same quarter a year ago UK GDP increased by 1.8% to Quarter 1 (Jan to Mar) 2019; up from 1.4% in the previous period.

Growth in the services sector slowed to 0.3% in the latest quarter, while there was a noticeable pickup in growth in the production sector, driven by growth of 2.2% in manufacturing output.

Private consumption, government consumption and gross capital formation contributed positively, while net trade contributed negatively to GDP growth.

The trade deficit widened to 3.4% of nominal GDP in Quarter 1 2019; when unspecified goods are excluded, the deficit widened to 2.3% of nominal GDP – this figure gives a better indication of the underlying trade position.

Gross fixed capital formation increased by 2.1% in the latest quarter, with strong growth in government investment; business investment increased by 0.5% in Quarter 1 2019 following four quarters of contraction.