UK first quarter GDP growth rate revised higher
The UK´s economy started the year on a slightly firmer footing and with greater momentum than initially though, according to revised figures from the government.
Gross domestic product expanded at a 0.4% quarter-on-quarter clip in the first three months of 2015, one tenth of a percentage point more than initially estmated by the Office for National Statistics.
Furthermore, upwards revisions to data for 2014 meant GDP expanded at a 2.9% year-on-year pace in the first quarter, considerably ahead of a preliminary estimate of 2.4%. Analysts had expected revised GDP data to reveal growth of 2.5%.
In particular, the rate of growth in household consumption was revised higher to a quarterly pace of 0.9%,versus an initial estimate of 0.5%. However, that was financed by consumers dipping into their personal saving.
As well, the current account deficit for the fourth quarter of 2014 was revised up to 6.4% of GDP and the tally for the first quarter to a worse than expected 5.8%.
The household savings ratio fell from 5.9% in the fourth quarter to 4.9% in the first - its lowest level since 2008.
“Despite these weaknesses, we still think that the UK’s recovery could gain momentum over the rest of 2015.
“Business surveys point on the basis of past form to quarterly GDP growth returning in Q2 to the 0.8% rate seen on average in 2014 […] ensuring that the UK is the fastest growing G7 economy for another year, ” analysts at Capital Economics wrote in a research note to clients.