11.04.201822:23:00UTC+00UK Economic Growth to Drop in the First Quarter - Forecasters

Economic expansion in the UK is seen to have fallen by half in the starting months of 2018, according to one of Britain's leading forecasting bodies, amid revived concerns for the health of the economy.

The National Institute for Economic and Social Research (NIESR) said growth was expected to drop to 0.2 percent in the first quarter of 2018 from 0.4 percent in the final three months of the previous year, when the economy saw a mini-recovery despite an overall slowdown in 2017 triggered by the Brexit vote.

The estimate, which comes ahead of official figures from the Office for National Statistics later this month, followed news that Britain's factories reported a sudden decline in production in February, the first drop in activity in the sector for almost a year.

Confirming fears of a slowdown in the UK economy so far this year, ONS figures showed a decline in manufacturing output. Construction output also dropped, indicating continued pressure for the industry.

There had been signs of the weakness for the economy earlier this year from company surveys, which showed falling activity compared with the final months of 2017.

However, there was better news for Britain's trade deficit – the difference between imports and exports – which shrank more than expected to £10.2 billion in February from £12.2 billion in January.