UK GDP surpasses prospects
Official figures released today show that the
UK economy grew by 0.7% in the first quarter compared to fourth quarter of 2003. The office of National Statistics also reported that GDP (Gross Domestic Product) increased by 3.4% in the mentioned period compared to the same period of last year. The previous estimates for the first quarter were 0.6% and 3% respectively.
These figures indicate that the strong
consumption and government spending, as well as pick up in business investment, animated the economy in the first quarter. Household spending, which accounts for 60% of GDP, soared by 0.6% during this period. At the same time, government spending continued to support the economy by investing into key public services.
On the other hand, industrial output, which accounts for 20% of GDP, dropped by 0.5% in the first quarter. This situation emphasizes that industrial sector is still in the doldrums.