Beast leaves economy cold as first quarter growth eases to 0.1%

The so-called Beast from the East took its toll on economic growth in the first quarter as growth fell to 0.1%, preliminary figures show.

The preliminary figures from the Office for National Statistics (ONS), which were much worse than economists and markets had predicted, showed the weakest growth since 2012.

It sparked a dive in the value of the pound, trading at $1.38 versus the dollar, as expectations of a rise in interest rates by the Bank of England next month tumbled.

The Bank had been forecasting a rise in gross domestic product (GDP) of 0.3%.

The ONS data, which is subject to revisions as more information becomes available, showed that while the bad weather had played a role in the decline - from growth of 0.4% in the previous quarter - other factors were also at play.

These included a big slowdown in the construction sector, which fell 3.3% on the previous quarter with much of the decrease being registered in January - before the snowstorms from Siberia had even struck.

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