First quarter output to fall

The UK economy looks to have endured a first-quarter slowdown as inflation hit household spending power.

Economists are expecting a marked dent in gross domestic product (GDP) when official figures are released today, with growth likely to have slowed to 0.4% from 0.7% in the fourth quarter.

The bleak outlook has been compounded by dismal retail sales, which recorded their biggest fall for seven years in the three months to March.