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UPDATE: UK GDP growth confirmed at slowest pace since Q4'12

U.K. GDP growth slowed to 0.1% in the three months to March from 0.4% in the fourth quarter of 2017, in line with expectations as muted household spending and weaker construction output dragged growth.

The latest reading was unchanged from the first estimate from the Office for National Statistics, confirming its slowest pace of expansion since the fourth quarter of 2012.

Household spending grew 0.2% in the quarter, while business investment decreased 0.2%.

Services, which make up the largest component of the economy, grew 0.3% on a quarterly basis. The pace of expansion, however, slowed in annual terms.

Construction output slipped 2.7%, revised from a fall of 3.3% in the preliminary estimate.

"Overall, the economy performed poorly in the first quarter with manufacturing growth slowing and weak consumer-facing services," said Rob Kent-Smith, head of GDP. "Oil and gas bounced back strongly, however, following the shutdown of the Forties pipeline at the end of last year."

"While the bad weather had some impact on the economy, particularly in construction and some areas of retail, its overall effect was limited, with partially offsetting impacts in energy supply and online sales," according to the Office for National Statistics.

Year over year, GDP grew 1.2%.

The pound was down 0.21% to $1.3352 as of 5:57 a.m. ET.

Earlier in the week, the U.K. saw annual inflation slow unexpectedly in April, dampening hopes for solid signs of recovery to support the case for a rate hike in August.