"The breakdown of the data is rather disappointing and not that supportive to hopes that the economy is establishing a firmer footing"
-Howard Archer, an economist at IHS Global Insight
Britain's economy returned to growth in first three month of this year, supported by increased consumer spending and improved investors' confidence, offsetting a drop in exports, official figures have confirmed. The nation's gross domestic product expanded 0.3% in the first quarter matching an estimate published on April 25, the Office for National Statistics said Thursday. Meantime, inventories increased by 2.5 billion pounds in the quarter, adding 0.4 percentage point to GDP, with consumer spending adding 0.1%, while exports and business investment fell. Despite signs of economic growth and stabilisation, retail sales dropped last month, and the International Monetary Fund said earlier this week that the economy far away from a strong and sustainable recovery.
"The breakdown of the data is rather disappointing and not that supportive to hopes that the economy is establishing a firmer footing," Howard Archer, an economist at IHS Global Insight, said in a research note. "The Bank of England will sooner or later undertake more stimulative action to help the economy."
"With employment and average earnings both dropping in the first quarter on their level in the previous quarter, the foundations for a sustained recovery, even one driven by consumers, still look pretty rickety," said Martin Beck, UK economist at Capital Economics.
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