Britain in severe slowdown one year before Brexit

Britain’s economy suffered a sharp slowdown in the first quarter with the weakest growth rate since 2012, official data showed yesterday in a gloomy sign one year before Brexit.

Gross domestic product expanded 0.1 per cent in the three months to the end of March, the Office for National Statistics (ONS) said in a statement that highlighted falling construction work and sluggish manufacturing activity.

That marked the slowest pace for more than five years and compared with expansion of 0.4 per cent in the final quarter of 2017. It also dashed market expectations for growth of 0.3 per cent.

GDP — which is the combined value of all the goods and services produced in an economy — was also hurt by the “Beast from the East” freezing weather, which lasted from late February through to March.

“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,” said ONS spokesman Rob Kent-Smith.

Britain is scheduled to leave the European Union in March 2019, after a Brexit referendum that was held almost two years ago. “It’s a very concerning sign for the economy with just one year to go until Brexit,” XTB analyst David Cheetham said.