UK Economy: GDP Growth Remains At 0.3%

A slowdown in the UK economy has been confirmed after GDP growth remained unchanged at 0.3%.

It had been expected the figure for the first three months of 2015 would be revised upwards by the Office for National Statistics (ONS).

But the latest figure is half the 0.6% recorded in the fourth quarter of last year and the slowest growth since 2012.

Despite improved figures from the industrial production and construction sectors, the data showed the services sector, representing more than three-quarters of UK output, grew more slowly in the first quarter than previously estimated.

The UK's economic performance has also been hampered by a widening overseas trade deficit, which increased from £9.6bn at the end of 2014 to £13.2bn in the first quarter.

ONS chief economist Joe Grice said: "Today's unchanged figure of 0.3% growth in GDP in the first quarter of 2015 reflects small upwards revisions to production and construction, offset by a downward revision to services.

"It confirms the picture of somewhat weaker growth in the first quarter than in recent ones. But no single quarter's figures should be given undue weight."

A Treasury spokesman said: "It is clear that the foundations for a sustainable recovery are being laid.

"While it is good news that the economy continues to grow, the job is not done and we must go on working through the plan that's securing a better economic future."

Vicky Redwood, chief UK economist at Capital Economics, said the lack of an upward revision was "a touch disappointing" but this was still likely in the future.

Most "striking" was the negative impact from trade which was "hardly good news" for rebalancing the economy, she said.

Net trade knocked 0.9 percentage points off the quarterly rate of GDP, according to the ONS data.

But Ms Redwood added: "Looking ahead, we remain optimistic that Q1's slowdown was just temporary and that the recovery is probably already back on track again."