Slowdown in UK economic growth

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UK economic growth continues, but the pace of recovery appears to be slowing

The latest figures to be published by the Office for National Statistics (ONS) have highlighted a slowdown in UK economic growth during the most recent full quarter.

According to ONS' data, the first three months of 2015 are estimated to have seen UK gross domestic product (GDP) increase by 0.3 per cent. This compared to a rise of 0.6 per cent in the final quarter of 2014 and demonstrates a slight reduction in the pace of recovery.

Overall, GDP was shown to be 2.4 per cent higher in Q1 2014 than during the same period in the previous year, while the three main industrial measures of economic output all showed differing levels of growth and decline.

The UK construction index shrank by 1.6 per cent during the three-month period, while production rose by 0.1 per cent and agricultural output was up by 0.2 per cent.

Responding to the announcement, Vicky Redwood, chief UK economist at Capital Economics, told the Telegraph: "With the election just days away, the news that the UK's economic recovery slowed sharply won't help the coalition parties."

"But this slowdown should just be temporary. We doubt that the recovery is on the cusp of a sustained slowdown."

Meanwhile, chancellor of the exchequer George gave his response: "This is a critical moment and a reminder you can't take recovery for granted."

Indeed, businesses up and down the country will now want reassurances that, whatever the composition of the new government following next week's election on May 7th, the new government will place bolstering the nation's economic recovery at the top of their agenda.