The UK’s Gross Domestic Product (GDP) output fell by 0.2 percentage points in the first three months of the year, according to figures released today.
The Office for National Statistics’ first preliminary estimate of GDP in Q1 2016 showed that growth slowed to 0.4% in Q1 2016, down from 0.6% in Q4 2015.
Output from the service sector increased by a further 0.6% in the quarter, but output from the manufacturing (-0.4%), production (-0.4%) and construction (-0.9%) sectors all fell.
Scott Knowles, Chief Executive of East Midlands Chamber*, said: “The slow in GDP growth is unsurprising given that there are a number of domestic uncertainties currently on the horizon, which have combined with global headwinds to become a major dampening factor on the UK’s economy.
“While there is still growth in the economy, it is becoming increasingly led by the service sector, which bodes poorly for the Government’s longer-term ambition to create an economy that is both balanced and sustainable.
“The Government must remain focused on the task of boosting economic growth, particularly in the production sectors. .”