Financial News: UK GDP Grows More Than Forecast

UK GDP Grows More Than Forecast

(RTTNews) - The UK economy grew more than expected in the first quarter driven by services and industrial production, the first estimate from the Office for National Statistics showed on Thursday.

Gross domestic product expanded 0.7 percent sequentially, following a 0.1 percent growth in the previous quarter. GDP was forecast to advance 0.6 percent. Moreover, this was the fastest growth in a year.

In output terms, data showed that the growth was driven by an increase of 0.7 percent in the service sector. Industrial production grew 1.1 percent, while construction output showed nil growth.

On a yearly basis, real GDP expanded 1.3 percent in the first quarter compared to economists' forecast of 1.2 percent.

In March, GDP climbed 0.2 percent but slower than the 0.5 percent growth logged in February.

Industrial production shrank 0.7 percent, reversing February's 1.7 percent increase. Likewise, manufacturing output fell 0.8 percent after rising 2.4 percent a month ago. Another report from the ONS showed that the visible trade deficit narrowed to GBP 19.9 bln from GBP 20.9 billion in February. The expected level was GBP 19.7 billion.

Including goods and services trade, the total trade deficit declined to GBP 3.69 billion from GBP 4.86 billion in February.

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