Sterling sinks to seven-week low as GDP misses expectations causing May rate hike doubts

Sterling fell 0.7% to $1.38

The UK economy grew by just 0.1% in the first quarter of 2018, the slowest rate since Q4 2012, casting doubts over whether the Bank of England will raise interest rates in May.

This follows growth of 0.5% in the last quarter of 2017 and was below expectations, with analysts forecasting the economy to grow by 0.3%. According to the Office for National Statistics (ONS), the slower-than-expected growth in the first three months was driven by a contraction in the construction sector, which shrunk by 3.3%. The services industry was the largest contributor, increasing 0.3%, however the ONS said a longer-term trend highlighted a weakening in the sector. Production expanded 0.7% while manufacturing growth slowed to 0.2%, although this was offset by an energy prod...