¹Office for National Statistics

Monthly review of economic and labour market trends in the UK.

Gross Domestic Product (GDP) output slowed modestly in 2008 quarter one compared with the previous quarter. Growth was driven by slower service sector output, offset by virtually flat total production growth. Manufacturing output returned to positive growth in the latest quarter. On the expenditure side, household spending strengthened while business investment weakened in quarter one compared with the previous quarter. The current account deficit narrowed in quarter four. The goods trade deficit widened slightly in quarter one. The labour market continues to be buoyant in 2008 but shows signs of softening; average earnings remain relatively subdued. Public sector finances showed a healthy position in April 2008. Consumer price inflation accelerated in April 2008 and was above the Government's inflation target. Producer output and input price inflation accelerated in 2008 quarter one and continued to increase in April 2008.

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The Full Text of this article can be found on the National Statistics website (http://www.statistics.gov.uk/downloads/theme_economy/EconReview_0608.pdf).