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UK Q1 GDP Growth Confirmed At 0.8%

The UK economy grew in the first quarter, as initially estimated, underpinned by household spending and investment, revised data from the Office for National Statistics showed on Thursday.

Gross domestic product rose 0.8 percent from the fourth quarter, in line with the estimate published on May 12. This was slower than the 1.3 percent expansion seen in the fourth quarter.

The level of real quarterly GDP remained 0.7 percent above its pre-coronavirus level.

In the first quarter, real household disposable income slid 0.2 percent, within this nominal households' gross disposable income grew but was offset by quarterly household inflation. The household saving ratio remained unchanged at 6.8 percent.

On the expenditure-side of GDP, household spending grew by unrevised 0.6 percent, driven by rises in spending on restaurants and hotels and communications. Reflecting falls in health expenditure, government spending dropped by revised 1.3 percent.

Growth in gross fixed capital formation was revised to 3.8 percent from 5.4 percent. Business investment fell by a downwardly revised 0.6 percent.

Further, the trade deficit widened to a record 5.4 percent of nominal GDP in the first quarter, primarily reflecting a rise in goods imports.

The current account deficit widened to GBP 51.7 billion in the first quarter from GBP 7.3 billion in the fourth quarter. The current account deficit climbed to 7.1 percent of GDP.

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