GDP Figures Due Out As Economic Recovery Slows

GDP preliminary figures for the first quarter of 2015 are set to be released, following a raft of disappointing economic data over the first three months that may weigh on the UK's performance for the whole year.

Poor readings have come in from the manufacturing and construction sectors over the past fortnight and a surprise drop in March's retail sales sparked concern about consumer confidence.

Yet at the same time, official numbers from the Office for National Statistics show wages are rising, inflation is falling and employment has hit its best rate since records began.

Some ups and downs are to be expected on the path to economic recovery, but such contrasting sets of statistics mean there are clear winners and losers.

Accountancy firm McKinsey calculates savers have missed out on a minimum of £65 billion in lost interest payments as the Bank of England base rate remains at a record-low 0.5%.

Pensioners on fixed incomes will have felt the squeeze, even as many are now being offered unprecedented freedom in accessing their savings pots.

Family budgets have paid the price for the rising cost of fuel over the past five years.

But businesses have been able to keep labour costs down, as wage growth remained below the rising cost of living.

Victoria Clarke, an economist at Investec, said: "We look for slightly slower growth this year, but not a big slowdown.

"Looking at the data, and the momentum in the UK economy, it looks pretty decent."

Although the International Monetary Fund and Organisation for Economic Co-operation and Development expect growth in the UK to be below last year's measure of 2.8% in 2015, even a forecast of a 2.7% expansion appears impressive when compared to Europe, which is stuck in recession.