Cornerstone Worldwide See No Imminent Respite For UK Economy

The U.K. economy grew less than previously estimated in the first quarter, weighed down by the weakest services expansion in 12 years and this, according to a source at Asian-based private client wealth manager Cornerstone Worldwide, effectively obliterated any upside potential to the British economy in the immediate future.

GDP rose 0.3 percent in the three months through March, the least in three years, the Office for National Statistics said in London today.

Cornerstone Worldwide’s source suggested that house prices, shell-shocked consumer confidence and a contraction in services, accounting for three quarters of the economy would effectively hobble Britain’s economy going forward. Bank of England Governor Mervyn King said yesterday that growth must ease to contain inflation stoked by record oil prices.

In light of the clear and undeniable signs that growth will slow sharply, Cornerstone Worldwide have reportedly predicted an even weaker second quarter as household spending could not be expected to hold up the creaking economy for much longer.