UK GDP grew by 0.1% in the first quarter, according to preliminary data, within expectations

UK GDP grew by 0.1% in the first quarter of 2023 compared to the previous quarter, according to the Second Survey of National Accounts released today by the Office for National Statistics. The data was unchanged compared to the first estimate and in line with Refinitiv consensus expectations.

Compared to the same quarter of 2022, growth reached 0.2%, which is also within what analysts expected.

The services sector grew by 0.1% during the quarter, driven by increases in information and communications activities, administrative services and support services. The construction sector grew by 0.4%, a figure that was revised downwards, as the first preview indicated an increase of 0.7%.

The production sector grew by 0.1%, after the review of manufacturing, which is expected to grow by 0.6% in the first three months of 2023, compared to the initial forecast of 0.5%.

The household saving rate was 8.7% in the quarter, down from 9.3% in the fourth quarter of 2022. Households’ real disposable income fell by 0.8% in the first three months of the year, after growth of 1.3% in the fourth quarter.