Services Industry has the UK economy on its back

The latest figures from the ONS show that growth in the UK’s economy slowed in Q1 from 0.6% in the last 3 months of 2015 to 0.4%.

The service industry, which accounts for approximately 78% of UK GDP posted growth of 0.6% in Q1 with construction, production and agriculture all contracting.

The ONS said the UK's total goods deficit narrowed from £10.3bn in January 2016, from £10.5bn in December but it was a trade surplus in services that left the overall goods and services gap at a respectable £3.5bn.

No pressure then on the legal services sector that contributes £25bn every year to the UK economy and continues to grow despite assaults from successive Lord Chancellors.

The attached graphic demonstrates how reliant the UK has become on a buoyant services industry. The sector’s output exceeded its pre-downturn peak in Quarter 1 of 2012 and is the only major component of GDP that has managed to achieve that.