Economists upbeat despite UK GDP drop in Q1: 'This is a cooling not a collapse'

Fall to 0.3% undershoots expectations

UK GDP growth saw a sharp slowdown to 0.3% in the first quarter of 2017, significantly below the 0.7% figure of Q4 2016 and undershooting analysts' expectations of a 0.4% rise.

According to the Office for National Statistics, GDP grew 0.3% between January and March 2017. The ONS said the slower growth was mainly due to a slowdown in services, which only grew by 0.3% compared to growth of 0.8% in Q4. Expectations prior to the announcement had been for growth to slow to 0.4%, but commentators have said it is worth taking these numbers "with a pinch of salt", as quarterly GDP growth is prone to revisions. Budget 2017: OBR significantly upgrades UK growth forecast  for this year The main contributor to the slowdown in services was the distribution, hotels ...