ONS Q1 Figures: UK growth at 0.8 per cent

The UK economy saw its longest period of continuous growth since 2008 in the 15 months to April 2014, according to the Office for National Statistics (ONS).

But growth in the first quarter of this year was marginally slower, at 0.8 per cent, than the 0.9 per cent growth analysts had predicted.

An ONS preliminary estimate, released today, showed that GDP is now just 0.6 per cent below its pre-downturn peak. GDP in the UK grew steadily from 2000 until early 2008, at which point a series of global financial and economic shocks affected UK and international economic growth.

From the peak in Q1 2008 to the trough in Q2 and Q3 2009, GDP decreased by 7.2 per cent. Previous economic downturns in the early 1980s and early 1990s did not see the same level of impact on GDP.

In the latest quarter there were increases in three of the four main aggregates; output increased by 0.9 per cent in services, the main contributor to growth. It increased by 0.8 per cent in production and 0.3 per cent in construction. However, output decreased by 0.7 per cent in agriculture.

The figures are likely to be welcomed by the Coalition Government. They follow a fall of 63,000 in the number of people out of work in the three months to January 2014.

Deputy Prime Minister Nick Clegg said: “Today’s growth figures are another welcome sign that our economy is moving in the right direction—employment is up, growth is up.”

“Skilled British workers in areas like our thriving automotive industry and our world class services sector are helping to rebalance the economy, building a fairer society for this generation and the next.

Chart: Index of output, employment and hours since Q1 2008, seasonally adjusted, Q1 2008 = 100



[Source: ONS]

Chart: Index of total production and sub-industries since Q1 2008, seasonally adjusted, Q1 2008 = 100



[Source: ONS]