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UK GDP confirmed at 0.8%

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  • 27/06/2014
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UK GDP confirmed at 0.8%
UK shares held on to modest gains this morning after the final reading for UK GDP growth in the first quarter was held at 0.8%.

The Office for National Statistics (ONS) confirmed the economy grew by 0.8% between January and March, in line with the previous estimate.

The reading had a muted impact on shares, with the index up 19 points at 6,754 shortly after it was released.

With growth yet to accelerate away this year, the prospects of a rate hike hang very much in the balance, especially as the figure was below the Bank of England’s own forecast.

Chris Williamson, chief economist at Markit, said: “The unchanged picture of the economy at the start of the year will be greeted with some disappointment at the Bank of England, where policymakers have been expecting the data to be revised higher, ultimately to 1.0%.

“The weaker than hoped for rate of growth therefore adds to the case for interest rates to remain on hold until next year.”

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