UK Q1 GDP unrevised at +0.7%q/q
25 May 2007
25.05.07
UK Q1 GDP unrevised at +0.7%q/q
The British economy grew at an unrevised 0.7%q/q for the first three months of 2007 despite a slowdown in consumer spending. The annual pace of growth was revised higher to 2.9%y/y from 2.8%y/y and consequently, the figures will do little to dampen expectations that interest rates will rise at least once more this year.
The GDP deflator, a measure of price pressures on the economy, recorded an annual rate of 3.2%, the highest since the fourth quarter of 2003. Again, this is something that the MPC will pay close attention to with regards to monetary policy in the months ahead.