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Sterling drops as UK economic growth slows

Sterling drops as UK economic growth slows

The value of the pound has dipped against other currencies after data showed the UK economy had disappointed in the first quarter of 2015.

Figures from the Office for National Statistics (ONS) showed UK GDP grew by 0.3 per cent in the first three months of 2015.

This was lower than the 0.6 per cent growth seen in the previous quarter and lower than the 0.5 per cent growth predicted by economists.

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Out of the major economic sectors, only services grew in the quarter, by 0.5 per cent, while the construction, production and agriculture sectors all contracted.

The quarter-on-quarter growth of 0.3 per cent meant the UK economy had expanded by 2.4 per cent compared to the same time last year.

The news caused the value of sterling to drop by nearly 0.5 per cent against the US dollar.