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U.K. Economy Stays in the Slow Lane as Growth Revised Lower

Pound weakness has pushed up inflation, hurting consumers
Economists say pace of expansion may not improve this year

Video player cover image — Credit Suisse’s William Porter and JPMorgan’s Bob Michele react to the slower-than-expected growth.Source: Bloomberg

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February 22, 2018, 9:30 AM UTCUpdated onFebruary 22, 2018, 11:44 AM UTC

The U.K. economy expanded less than previously estimated in the fourth quarter as consumers and businesses absorbed faster inflation, keeping the country in the slow lane of global growth.

The 0.4 percent expansion -- revised down from 0.5 percent -- also left full-year growth below the initial estimate. On an annualized basis, the rate was 1.6 percent in the quarter, compared with a 2.6 percent pace in the U.S.