UK GDP: First quarter growth of 0.5% confirmed

25th May 2011

The BBC News website reported that the UK economy has recovered ground lost in the last quarter of 2010 but construction remains a worry

The UK economy grew by 0.5% in the first three months of the year, official GDP figures have confirmed.

Although the manufacturing and service sectors had performed well, the ONS said construction continued to suffer.

The growth during the first quarter followed a contraction in GDP of 0.5% in the final three months of 2010.

The Telegraph reported that the figures pointed to a stagnating economy, because the UK economy contracted by the same amount in the final quarter of 2010.

"The lack of any upward revision leaves the economic recovery earlier this year still looking disappointingly weak," said Vicky Redwood at Capital Economics.

Household spending fell by 0.6% the same quarter. mrangry from the Telegraph community boards doesn't understand the fall:

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