Final data published by the Office for National Statistics (ONS) showed that the economy expanded by 0.8% in the 1st quarter after growing by 1.3% in the 4th quarter. The latest increase confirmed economists' expectations and preliminary assessment. The ONS said that the level of real GDP remains 0.7% above where it was pre-coronavirus at Quarter 4 2019.
The volume of production increased by 1.3% in the 1st quarter, but remained 1.7% below the pre-coronavirus level. Meanwhile, manufacturing production increased by 1.4% compared to the 4th quarter. Services output grew by 0.6% in the 1st quarter, which was higher than the preliminary estimate (+0.4%). Services output is now 1.5% above Quarter 4 2019 levels. In the 1st quarter, the rise in services output was driven by an increase in output from information and communication (4.2%). As for the construction output, it grew by 2.2% in the 1st quarter (revised from +3.8%). Construction output is now 0.3% above its pre-coronavirus levels.
The data also showed that household final consumption expenditure grew by an unrevised 0.6%, where gross fixed capital formation grew by a revised 3.8%. Meanwhile, business investment decreased by 0.6% compared to the 4th quarter, and increased by 8.3% per annum. Economists had expected a decrease of 0.6% for the quarter and an increase of 8.5% in annual terms.