Weak start to 2017 as UK economic growth plummets 70%

The UK’s economy grew just 0.2% during the first quarter of 2017, according to new figures.

Data from the Office for National Statistics (ONS) showed that growth was even lower than the initial estimate of 0.3%.

The ONS said that the dominant services sector, representing over 75% of output, had been weaker than forecast.

The figures follow growth of 0.7% in Q4 2016.

Declines in household spending and consumer-facing industries such as hospitality and retail, in addition to weak growth in manufacturing and construction, have been named as factors contributing to the slowdown.

Household consumption grew, but at its weakest pace since Q4 2014. Business investment, conversely, returned to growth after a weak end to 2016.

While the UK economy performed better than expected following last year’s Brexit vote, Sky News has reported that accelerating price rises, partly driven by the sharp fall in value of the pound, now appear to be taking their toll on consumers.

Data from the ONS has also showed that, when inflation is taken into account, wages fell by 0.2% in Q1 2017, the first decline in two and a half years.

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