UK economy grows by 0.5% in Q1

Household incomes fell by 0.8% following a 0.9% drop in the fourth quarter and consumer spending declined 0.6%, the largest drop since the second quarter of 2009. The UK economy registered a fairly muted growth in the first quarter of the year, thanks largely to improvement in exports, but spiraling inflation continued to hurt consumer spending. Gross Domestic Product (GDP) expanded by 0.5% from the fourth quarter of 2010, the same as previously estimated, the Office for National Statistics (ONS) said today in London. The pace of growth from a year earlier was revised to 1.6% from 1.8%.   The pound extended its decline against the dollar after the data were published.

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