GDP Day: April 2018 The preliminary estimate of gross domestic product (GDP) shows that the UK economy grew by 0.1% in Quarter 1 (Jan to Mar) 2018, the weakest quarterly growth since Quarter 4 (Oct to Dec) 2012. The weak growth in Quarter 1 2018 was driven by a sharp fall in construction output and a sluggish manufacturing sector, while growth in services also slowed. Today's figures suggest that the overall impact from the recent snow and adverse weather conditions across the UK was relatively small. Growth in the Consumer Prices Index including owner occupiers' housing costs (CPIH) fell to 2.3% in March 2018, while growth in output Producer Price Index (PPI) fell to 2.4% and growth in input PPI rose to 4.2%. The unemployment rate was at its lowest since 1975, at 4.2% in the three months to February 2018. UK gross domestic product (GDP) was estimated to have increased by 0.1% in Quarter 1 (Jan to Mar) 2018, compared with 0.4% in Quarter 4 (Oct to Dec) 2017.
UK GDP growth was the slowest since Quarter 4 2012, with construction being the largest downward pull on GDP, falling by 3.3%.
Production increased by 0.7%, with manufacturing growth slowing to 0.2%; slowing manufacturing was partially offset by an increase in energy production due to the below-average temperatures.
The services industries were the largest contributor to GDP growth, increasing by 0.3% in Quarter 1 2018, although the longer-term trend continues to show a weakening in services growth.
While some impacts on GDP from the snow in the first quarter of 2018 have been recorded for construction and retail sales, the effects were generally small, with very little impact observed in other areas of the economy.
In the three months to February 2018, services output increased by 0.4% compared with the three months ending November 2017.
Business services and finance continues to be the largest contributor to the three-month on three-month growth, contributing 0.26 percentage points.
The Index of Services decreased by 0.2% between January 2018 and February 2018; this is the lowest month-on-month services growth since February 2017.
Computer programming made the largest contribution to the month-on-month fall, contributing negative 0.05 percentage points.
In the three months to February 2018, services output increased by 1.3% compared with the three months ending February 2017. Upcoming changes to the GDP publication model. The new model is outlined, as well as the benefits and trade offs and the impact on data content.
Commenting on today's GDP figures, Rob Kent-Smith, Head of National Accounts, Office for National Statistics said: "Our initial estimate shows the UK economy growing at its slowest pace in more than five years with weaker manufacturing growth, subdued consumer-facing industries and construction output falling significantly. "While the snow had some impact on the economy, particularly in construction and some areas of retail, its overall effect was limited with the bad weather actually boosting energy supply and online sales."
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