Growth at slowest in five years – but snow not blamed

THE BRITISH economy grew at its slowest pace in five years in the first quarter, prompting disappointment from Downing Street and raising doubt over a Bank of England interest rate hike next month.

The Office for National Statistics (ONS) said gross domestic product (GDP) grew by 0.1 per cent in its initial estimate for January to March. It was the weakest quarterly growth since the fourth quarter of 2012 and worse than economist predictions for a slowdown to 0.3 per cent. That compares with 0.4 per cent in the final quarter of 2017.

Downing Street said the GDP figures were “clearly disappointing”, but insisted that the fundamentals of the economy remain “strong”. Asked if uncertainty surrounding Brexit had contributed towards the near-standstill in growth, the Number 10 spokesman said: “Our economy has remained resilient.

“Growth was stronger than many expected after the referendum. What the Government has been working towards has been providing certainty for business.

“The agreement on the implementation period was an important step providing certainty for businesses.”

While many thought the socalled Beast from the East would have hit Britain’s economy hardest, figures showed recent snowfalls had a relatively small effect.

ONS spokesman Rob KentSmith said: “Our initial estimate shows the UK economy growing at its slowest pace in more than five years, with weaker manufacturing growth, subdued consumer-facing industries and construction output falling significantly. While the snow had some impact on the economy, particularly in construction and some areas of retail, its overall effect was limited, with the bad weather actually boosting energy supplies and online sales.”