UK economy grows 0.8% in Q1

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The UK economy expanded by 0.8% in Q1, slightly below economists' expectations.

The first estimate of the figure for the first quarter, released by the Office for National Statistics (ONS) this morning, just missed predictions of 0.9%, although markets remained firmer after the figure was released.

This is the fifth successive quarter of growth, as the economy moves closer to its pre-crisis norm. Figures for the fourth quarter of 2013 showed growth of 0.7%.

The gains have left the UK economy just 0.6% below its pre-crisis peak, the ONS said. From peak to trough, the UK's economy shrank by 7.2% in the aftermath of the financial crisis.

Output increased in three of the four main industrial groupings within the economy in Q1 compared with Q4, the ONS said.

Output increased by 0.9% in services, 0.8% in production and 0.3% in construction. However, output decreased by 0.7% in agriculture.

GDP was 3.1% higher in the first quarter compared with the same quarter a year ago.

The ONS said there was some evidence to suggest construction output was affected by the storms and high rainfall in January and February. However, over the quarter, the storms have not had a significant impact on GDP growth and the ONS has not classified them as a statistical special event.

Sterling dipped slightly against the dollar as the data was released.

Earlier this month, the International Monetary fund said it expects the UK to be the G8's best performing economy in 2014, wih overall growth of 2.9%.

Today's figure will add weight to the Bank of England's plan to raise interest rates from their historic low of 0.5% as the economic recovery gains ground.

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