UK economic growth confirmed as tepid

It has been confirmed that Britain’s economy grew by a disappointing 0.5 percent in the first three months of the year.

The latest official calculations also show GDP shrank by 0.5 percent in the final quarter of 2010.

Household disposable income fell – by 0.8 percent -as did consumer spending by 0.6 percent, its biggest decline since the depths of the recession in 2009. Business investment was down by 3.2 percent.

The expansion came largely from exports, helped by the weaker pound.

There was an upward revision to first-quarter construction output, but this was cancelled out by a downward revision to manufacturing.

Analysts had not expected any revision to the headline growth figure, so the data is unlikely to alter the view that the Bank of England will keep interest rates at a record low for the rest of this year due to the weakness of the UK’s recovery.

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