The UK's economy is still in a state, as a slump in household spending has lead to little significant economic growth over the past two quarters.
According to the Office for National Statistics, the UK’s Gross domestic product (GDP) grew by only 0.5% in the first quarter of 2011, meaning growth in the first quarter was cancelled out by a 0.5% decline in GDP in the final quarter of 2010.
And figures revealed that spending has declined by 0.6% too, its biggest drop since the second quarter of 2009. This is after consumers continue to feel the pinch with wages that fail to keep up with inflation.
Bu there was some positive news for the Government, as the deficit for net trade decreased to £5.7 from £11.5 billion the previous year. To put this in perspective, this growth was the highest since records began in 1955.Economist at ING James Knightley, said: ‘The only positive story in the report is the 3.7% jump in exports and the 2.3% fall in imports. Hopefully, this reflects improved UK export competitiveness from sterling's decline, while the plunge in imports is indicative of the weakness in domestic demand.’