Yael Selfin, Chief Economist at KPMG in the UK, comments on today’s GDP Q1 data
Yael Selfin, Chief Economist at KPMG in the UK, comments on today’s GDP Q1 data:
“Disappointing GDP growth of only 0.1% in the first quarter of 2018 can only be partially attributed to the unseasonably cold weather in February and March, according to today’s figures from the ONS. Snow contributed to the 3.3% fall in construction output and also saw retail sales contract in the first quarter, however that was partially offset by an increase in energy production as a result of the lower temperatures. Architectural and engineering activities were relatively strong, pointing at a potential pick up in construction activity later this year.
“Economic growth was driven by business services and the financial sector in Q1, while pressure on households’ finances was evident with consumer facing services such as retail, restaurants and leisure activities continuing to slow down. A fall in manufacturing growth was disappointing given Sterling’s relative weakness, which should have given exports more support.
“With the data today pointing at a potentially more significant moderation in growth than could be attributed to the unseasonably bad weather in the first quarter this year, the MPC may be less unanimous in its decision on interest rates on the 10th May.”
For media enquiries, please contact:
Riku Heikkila, CNC Communications
Tel: 020 3219 8812
KPMG Press Office
Tel: +44 (0) 207 694 8773
Follow us on twitter: @kpmguk
Notes to Editors:
KPMG LLP, a UK limited liability partnership, operates from 22 offices across the UK with approximately 14,500 partners and staff. The UK firm recorded a revenue of £2.2 billion in the year ended 30 September 2017. KPMG is a global network of professional firms providing Audit, Tax, and Advisory services. It operates in 152 countries and has 189,000 professionals working in member firms around the world. The independent member firms of the KPMG network are affiliated with KPMG International Cooperative ("KPMG International"), a Swiss entity. Each KPMG firm is a legally distinct and separate entity and describes itself as such.