LONDON (AFX) - UK GDP -- at constant 1995 market prices -- rose 0.3 pct in the first quarter compared to the previous quarter, leaving it 2.5 pct higher year-on-year, according to preliminary estimates released by National Statistics.
NS said the effects of foot and mouth in the first quarter of 2001 have been minimal.
The AFX News median of analysts' forecasts was for GDP to have risen 0.4 pct quarter-on-quarter and 2.6 pct year-on-year.
Fourth quarter GDP was up 0.4 pct quarter-on-quarter and 2.6 pct year-on-year.
Output of the service industries is estimated to have grown 0.7 pct on the quarter compared with a 0.7 pct rise in the previous quarter, leaving output of the sector up 3.6 pct year-on-year.
NS noted that output of the distribution, hotel and catering sector rose 0.4 pct on the quarter for a 3.5 pct year-on-year increase. It added that there was modest growth in the communications industries, while the growth rate in 'computing and other business activities' was strong.
The transport sector also grew modestly in the first quarter. Output of the production industries is estimated to have decreased in the latest quarter, arising from falls in manufacturing and mineral extraction, including oil and gas.
The energy supply industries however grew in the first quarter. Within manufacturing, output in the high tech industries which had provided growth previously are now showing falls. Output in the electrical and optical equipment sector is estimated to decline on the quarter for the first time since the second quarter of 1992, led by falls in the optical networking and mobile phones industries.
NS estimated that output of the construction sector fell on the quarter.
Output of the agriculture, forestry and fishery sector is estimated to have grown from the last quarter - mainly due to an increase in agricultural production.
The key driver in this sector was higher milk production. The estimated growth in the first quarter follows a sharp decline in the last quarter of 2000.
Growth in the central government sector was lower than in the previous quarter.