GDP figures better than expected

Published: Tuesday 30th June 2015 by The News Editor

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Britain’s economy grew more strongly than previously thought in the first quarter of the year and official figures also revealed a better performance for 2014.

Gross domestic product (GDP) increased by 0.4% between January and March, up from a previous estimate of 0.3%, according to the Office for National Statistics (ONS).

The ONS added that a raft of data revisions mean the economy grew by 3% in 2014 – up from earlier estimates of 2.8%.

The latest breakdown of economic data for the first three months of the year showed real household disposable income rose at the fastest annual pace since 2001 – up by 4.5% year-on-year – helping drive growth in GDP and offset a dire quarter for UK trade.

Today’s upward revision was widely expected, given that economists and the Bank of England had seen the initial estimates as being too low.

But it still marks a sharp slowdown on the 0.6% growth seen in the final three months of 2014.

Chancellor George Osborne welcomed the growth revisions, which come ahead of his summer Budget on July 8.

He said: “It is clear that our plan is laying the foundations for economic security for working people, with the three main sectors of the economy growing over the past year and business investment over 30% higher than at the start of the last parliament.

“Today’s figures are another reminder that the economic plan we’ve pursued in Britain these last five years has increased our resilience – and we will take whatever further steps are needed to protect the UK from the new risks we see to our economic security.”

Published: Tuesday 30th June 2015 by The News Editor

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