UK economy grows at slowest pace for 3 years

In the aftermath of the credit crunch, both business services and construction industries have been affected, resulting in the UK economy growing at its slowest pace since 2005, whilst gross domestic product rose 0.4 percent to March.

Business services such as accountancy and advertising expanded at their slowest pace for five years as many firms have cut back on investment which is a natural step considering the economic downturn being the worst climate since the Great Depression.

Even though growth is slowing, inflation is rising well above the 2 percent target.

This is also a challenging time for the Prime Minister Gordon Brown as slowing economic growth will make it more difficult to revive the parties fortunes as voters are worried after 10 years standards of living rising and tumbling house prices.

Labour’s situation was cemented by the loss of the Labour seat at the by-election in Crewe.

British Land Co. Plc, the biggest developer in London, reported its first annual loss in at least 20 years after extensive write-downs, with UK homebuilders cutting tens of thousands of jobs, whilst industrial production including oil and gas reduced by 0.1 percent.

Story link: UK economy grows at slowest pace for 3 years