Monthly Economic Review – April 2017
(Based on April 2017 data releases)
- UK economic growth slows in Q1 as output from consumer-focused industries weakened
- UK consumer price inflation holds steady, but wage growth slows further
- US GDP growth weakens as the outlook for the Eurozone continues to improve
The UK economy grew by 0.3% in Q1 2017, slower than the growth of 0.7% recorded in Q4. Weakening GDP growth in Q1 was mainly due to growth in service sector output, which accounts for over three quarters of UK economic output.
UK CPI inflation stood at 2.3% in March 2017, unchanged from February but still above the Bank of England’s 2% target. Rising prices for food, clothing and footwear were the main contributors to the change in rate.
The first estimate of US GDP revealed that the US economy, the world’s largest, grew at an annualised rate of 0.7% in Q1 2017. This was the slowest rate of growth since Q1 2014. The slowdown was largely driven by consumer spending, which accounts for two-thirds of US economic output.