The British gross domestic product (GDP) continues to slow down on an annual basis, according to data from the National Statistics Office of the country. At second reading the increase in the economy in the first three months of the year is 0.1% compared to the previous quarter. This is the weakest growth since the end of 2012, when the country’s economy shrunk by 0.1%. On an annual basis there is also no change – 1.2%.

By comparison, in Q4 2017 the UK GDP growth was 0.4% or the slowest growth among the major economies of the period.

According to the statistical office, the most likely cause of the lag is the slower growth in consumer-targeted industries.

The data show that in the first three months of the year the household spending grew by 0.2% on quarter-on-quarter basis, while business investment shrank by 0.2%.

There is also a rise in employee wages, which rose by 1.6% in the January-March period.

The reverse pole – with a decrease, is the GDP per capita, which shrinks 0.1% quarter-on-quarter.

According to the UK statistical office, the bad weather in the winter season was cited as the main reason for the slowdown, which negatively affected the economy, especially in the construction and retail sectors. However, its overall effect has been limited and to a certain extent offset of the energy sector and online sales.