Sluggish UK economy tipped for further slowdown

Experts warn the UK economy is heavily reliant on consumer spending. Picture: John Devlin

Experts warn the UK economy is heavily reliant on consumer spending. Picture: John Devlin

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Britain’s economy is likely to have cooled further this spring after first-quarter GDP growth was today confirmed at just 0.4 per cent.

Fresh data from the Office for National Statistics also showed that annual growth for the UK economy had been revised down 0.1 percentage points to 2 per cent.

The quarterly figures represent the slowest pace of growth since the third quarter of last year and also mark a slowdown on the 0.6 per cent recorded in the final three months of 2015.

READ MORE: UK economy’s growth slows as concerns grow over Brexit

Experts have warned that the economy remains heavily reliant on consumer spending and, if sluggish growth continues, the Bank of England could be forced to consider fresh fiscal stimulus.

Howard Archer of IHS Global Insight said: “We suspect GDP growth will be limited to 0.2 to 0.3 per cent in the second quarter, as already significant domestic and global uncertainties are magnified by the referendum on EU membership.”

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