UK: Q1 GDP growth was disappointing - HSBC

Analysts at HSBC note that the UK GDP growth rate more than halved in Q1, to 0.3% q-o-q (consensus: 0.4%), led down by a fall in the distribution, hotels and restaurants sector (-0.5% q-o-q, the weakest since Q4 2012).

Key Quotes

“The data came on the heels of a drop in consumer confidence, a second monthly fall in the Nationwide house price index and a 6% y-o-y fall in mortgage approvals. For those MPC members who were reportedly considering following Kristin Forbes and voting to raise rates, we think these downbeat data will discourage them from doing so, for now at least.”