The Office for National Statistics estimates also revealed that construction output sagged 4.7% in the first quarter following a 2.3 % fall in Q4 last year.
Total services output increased by 0.9% in Q1 2011 compared with a decrease of 0.6% in the previous quarter. Meanwhile total production output rose 0.4% in the first quarter compared to a 0.8% increase in the previous quarter, driven by a 1.1% increase in manufacturing.
John Cridland, CBI director general, said: “We are seeing a modest rebound in economic growth, recouping the loss in output caused by the bad weather in the fourth quarter of last year. Growth of 0.5% in the first quarter is in line with our expectations and, while encouraging, it does reaffirm our view that the recovery remains slow and sluggish.
“The main reason the growth figures were not stronger is the contraction in construction, with the overhang into January from the bad weather. February’s construction figures show some recovery.”
