Investing.com - The U.K. economy slowed more than expected in the first quarter, preliminary official data showed on Thursday.
In a report, the Office for National Statistics (ONS) said gross domestic product expanded by a seasonally adjusted 0.3% in the three months ended March 31, below forecasts for growth of 0.4%. The U.K.’s economy grew by 0.7% in the preceding quarter and has now grown for 17 consecutive quarters.
Year-over-year, U.K. economic growth expanded 2.1% in the first quarter, also below the forecast for an expansion of 2.2%. The U.K. economy grew at an annualized rate of 1.9% in the fourth quarter.
Additionally, the index of services in the U.K. rose 0.5%, matching expectations and after a prior gain of 0.6%.
The ONS noted that the slower growth in the first quarter was mainly due to services, which grew by 0.3% compared with growth of 0.8% in the fourth quarter of 2016.
The ONS also warned that “there were falls in several important consumer-focused industries, such as retail sales and accommodation; this was due in part to prices increasing more than spending.”
Immediately following the report, GBP/USD was trading at 1.2924 from around 1.2925 ahead of the release of the data, EUR/GBP was unchanged at 0.8428 and GBP/JPY changed hands at 143.79, compared to the prior 143.86.
Meanwhile, European stock markets showed mixed trade. London’s FTSE 100 lost 0.23%, the EURO STOXX 50 was unchanged, France's CAC 40 inched up 0.03%, while Germany's DAX gave up 0.06%.