GDP rose by 0.4 per cent in the first three months of the year, down from a 0.6 per cent increase in the final quarter of 2007, according to the Office for National Statistics.

The annual rate of growth slowed from 2.8 per cent in the fourth quarter to 2.5 per cent in 2008, below expectations of a 2.6 per cent rise.

The credit freeze weighed on the pace of growth in the UK’s services sector, which accounts for about 75 per cent of the country’s GDP. Growth slowed to 0.6 per cent.

Within services, finance and business services were hardest hit, with growth falling from 0.6 per cent to 0.4 per cent in the first quarter.

A weaker performance from mining and quarry firms also offset increases from manufacturers causing industrial output — accounting for 19 per cent of the economy — to shrink by 0.1 per cent in the opening three months of the year.

The Government forecasts that the economy will grow by between 1.75 per cent and 2.25 per cent this year, while most economists are more circumspect in their predictions.

Alan Clarke, UK economist for BNP Paribas, said: “Given the likely reverse in the strength of retail sales combined with continued deterioration elsewhere in the breakdown — particularly financial and real estate — growth is likely to be even slower in the coming quarters.”

The gloomy figures will put more pressure on the Bank of England to consider a rate cut next month to boost the flagging economy.

Howard Archer, chief UK and European economist for Global Insight, the economic consultancy, said: “We expect the Bank of England to trim interest rates by a further 25 basis points to 4.75 per cent in June, and would not rule out a move as early as May if credit conditions remain tight.”

David Kern, economic adviser of the British Chambers of Commerce, said: “Whilst the new figures do not signal a recession, they highlight the need for corrective action to ensure that the credit crunch and the squeeze on consumer spending do not worsen the downward pressures on the economy.

“We continue to urge the MPC [Monetary Policy Committee] to announce a modest cut in interest rates to 4.75 per cent in May.”

source: http://business.timesonline.co.uk/tol/business/economics/article3814472.ece

• Bronze Tenant Check Report - £8.95
  
• Silver Tenant Check Report - £13.95
  
• Gold Tenant Credit Report - £18.95
  
• Platinum Tenant Credit Report - £29.95
  
• Locate Report - £27.95
  

Each tenant report has its benefits however for £29.95 you will get our most comprehensive analysis with the Platinum Tenant Report. Their pricing is extremely competitive, this has been achieved from their ability to develop systems and processes that are tailored to focus on specific needs of landlords and letting agents without unnecessary overheads unlike some other agency.

If you want to know more about their system then I suggest you to make visit their FAQ section which have all information you need. If you need any type of helps than you can mail them or call them on 020 3039 7249.

So make your visit on Credit-Check-Services.co.uk - the online service providing tenant check reports.

Oil futures rose as much as $2.11 to $103.95 on the New York Mercantile Exchange. That level tops the record set in April 1980 of $39.50 a barrel, which would translate to $103.76 a barrel in today’s money.

The latest surge in oil prices is taking place as investors seek refuge in commodities to offset a slowing economy and declines in the dollar, as well as to hedge against inflation.

The dollar fell to its lowest level in three years against the yen on Monday. It also dropped to a record $1.5274 in early New York trading against the euro following steep declines last week. (more…)

A barrel of US light crude was worth $96.46, up $1, having fallen to $95.46 on Thursday on pessimistic comments by Federal Reserve boss Ben Bernanke.

His forecast for slower economic growth may have meant weaker demand as firms reined in spending, analysts said.

But disruption to oil output in the North Sea from BP and ConocoPhillips rigs helped to support crude prices. (more…)

The Treasury Department, which issues a daily accounting of the debt, said Wednesday that the debt subject to limit was at $9 trillion on Tuesday. It was $8.996 trillion on Monday.

Last month, the U.S. Congress passed and U.S. President George W. Bush signed into law an increase in the government’s borrowing ceiling to $9.815 trillion. It was the fifth debt limit increase since Bush took office in January 2001. Those increases have totalled $3.865 trillion. (more…)

The 13-nation European currency reached $1.4274 in late New York trading — exceeding its previous peak of $1.4189, reached Thursday. The euro had bought $1.4160 in New York late Thursday.

The euro spiked above $1.42 after the release of data showing that a key measure of inflation in the U.S. eased last month to the slowest pace in 3 1/2 years. (more…)

Alan Greenspan said they had not acted on concerns about complex and risky financial deals because only very wealthy people invested in them.

In an interview with BBC Radio 4, he also said that he was increasingly pessimistic about the world economy. (more…)

In prepared remarks, he said the money would help pay for armoured vehicles to protect US troops from roadside bombs.

The request for the 2008 fiscal year, which starts in October, has risen more than a third from initial projections.

Democrats say they will try to use the spending request as leverage in their attempts to withdraw troops from Iraq. (more…)

Figures showed that US consumer confidence has fallen to a near two-year low, while house prices have seen the sharpest drop in 16 years.

Taken together, analysts said the data boosted expectations that the Federal Reserve will cut interest rates again when it next meets in October.

In early Wednesday trading, the euro hit a fresh high of $1.4163. (more…)

In early Monday trading, the euro climbed to $1.4130, beating Friday’s high of $1.4120.

The higher value of the euro has led to fears over job cuts in Europe, as it makes exports to the US more expensive.

Separately, gold prices are near a 28-year high, while oil has fallen. US crude lost 48 cents to $81.14 a barrel. (more…)