The UK’s economy grew by just 0.3% in the first quarter of 2015 compared to expectations of 0.5% growth and last quarter’s 0.6% rise, according to the Office for National Statistics. The first quarter’s figure is the worst reading since the fourth quarter of 2012 when it was up only 0.1%.

Services was the best performing sector increasing by 0.5% and contributing 0.41% points to GDP growth, ONS figures also show. The other three main industrial groups decreased, with construction falling by 1.6%, production by 0.1% and agriculture by 0.2%.

Despite the weaker than expected figures, experts believe the economy is still heading in the right direction. Fidelity Worldwide Investment economist Anna Stupnytska believes the economy should pick up momentum in the second half of the year as there are good “signs of stabilisation” emerging in the housing sector, as well as in real income growth.

Source: Mortgage Strategy