UK economy weakens in first quarter

News Article - 28 April 2008
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The British economy slowed over the first quarter of 2008 to just 0.4 per cent compared with the previous three months.

Slowing between January and March to its weakest rate in the past three years, economic growth fell from 0.6 per cent the previous quarter.

Data from the Office for National Statistics (ONS) suggests that total production fell by 0.1 per cent during the first quarter of the year, down from growth of 0.2 per cent in the fourth quarter of 2007.

Growth slowed particularly in the production and service industries and the business services and finance sector. However, growth strengthened in the manufacturing industry and construction sector.

Britain's economic growth is now below trend and pressure is growing on the Bank of England to continue to reduce interest rates.

Slowing economic growth makes it more important than ever for firms to keep track of their finances and accounting software can help to make this possible.

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