UK economy continues to grow at slower rate
Despite a difficult 12 months, the UK’s economy has grown by 0.3 per cent over the first 3 months of 2017. There also seems to be some signs the economy is slowing, with the first 3 months of 2016 yielding double at 0.8 per cent.
The service sector seems to have been the worst performer, with economists originally setting the estimated growth figure at 0.4 per cent, 0.1 per cent above the actual result. Chris Williamson, chief economist, IHS Markit, stated: "The message is clear: the start of the year saw the weakest pace of growth for a year as rising prices have started to hit household spending."
The service industry represents 78 per cent of the UK’s economy, and because of rising interest rates and more difficult trading conditions market growth has started to slow. With the value of the pound dropping, many had thought the service industry would get a boost from tourism, as the UK now offers much better exchange rates.
Output in the construction sector has also had an impact on GDP, expanding by 0.2% in the first three months of the year. That figure is still down on the previous year, with the last 3 months of 2016 yielding 1 per cent growth. Manufacturing has performed well off the back of the motor industry, with production numbers at a record high.
It seems there is much uncertainty in the UK economy, and speaking to many economists they’re struggling to suggest what the rest of 2017 could bring.