Capital Economics said – “Our calculations indicate that GDP growth (13.30 BST) slowed to 1.5% annualised in Q1. Consumption growth probably slowed to just under 2%.”Unseasonably bad weather more than offset the potential boost from the slump in energy prices. Net trade was also a drag, with a big decline in exports outpacing a more modest drop in imports. Finally, though, it seems that the unexpected weakness of final sales prompted a sizeable inventory build-up, which probably added around 1.8% points to overall GDP growth. The median forecast of 1.0% does not appear to have allowed for this.
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