According to the ONS, economy in the UK as business services increased<
The 0.4% increase was registered in the first three months of the year, despite consistent decreases in manufacturing and construction sectors that significantly affected the GDP in 2015, the Office for National Statistic shows.
The figures indicating a slowing down when compared to the growth rate in 2015 confirm the uncertainty surrounding the Brexit referendum taking toll on the business and investment confidence.
Moreover, as business investment fell by 0.5% for the first time in the last three years in the first quarter of 2016, household consumption increased by 0.7%.
According to Chris Williamson’s opinion, chief economist at Markit, the apparent health of the UK economy has masked “an unbalanced economy and a slowing pace of expansion, with the annual rate of growth slipping to the weakest for almost three years”.
Howard Archer, chief economist at IHS Global Insight, also commented: “Not only did GDP growth slow in the first quarter, but it was entirely dependent on the services sector on the output side and heavily reliant on consumer spending on the expenditure side, which will fuel concern over an unbalanced economy.”
Experts and analysts predict the economic growth for the UK will slow easily in the future, in contrast with last year’s 2.2% expansion.