No double dip as UK economy grows 0.5% in Q1

The UK economy grew by 0.5% in the first quarter of the year, down slightly on economists' estimates, the Office for National Statistics (ONS) said today.

Analysts had predicted a modest growth figure today of around 0.6% to 0.7%. UK GDP contracted 0.5% in Q4 2010, slightly ahead of previous estimates of -0.6%. In Q3 2010, the economy grew by 0.7%. In the first quarter of last year, GDP rose 0.3%. Following release of the figures, sterling was up 0.05% against the dollar to $1.64890. Although Chancellor George Osborne is likely to pounce on the figures as proof the recovery is back on track, the modest increase in GDP will also strengthen the arm of those arguing economic growth remains sluggish as the coalition's programme of cuts and ...