The UK economy continued to expand in the first quarter, albeit at a slower pace than in the last quarter of 2021, and showed signs of slowing growth in March as the cost-of-living crisis weighed on activity.
GDP ran at a rate of 0.8% in the period January-March, compared to the previous quarter, according to the statistical service ONS, from 1.3% in the fourth quarter of 2021.
Economists expected the economy to grow by 1%.
Growth in the first quarter is attributed to the 0.6% increase in household consumption, which was offset by large movements in international trade flows.
In March, the UK economy shrank by 0.1% on a monthly basis, signaling that this momentum weakened further at the end of the first quarter.
Economists expect the UK economy to continue to slow in the second quarter, with rising risk of recession and higher prices and higher interest rates affecting activity and squeezing consumer purchasing power.
Source: Capital
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