UK economic growth bounced back in the first quarter of this year rising 0.5% on the quarter in Q1 and up 1.8% on the year. However, the rise is probably insufficient to prompt a rise in interest rates next month by the Monetary Policy Committee.

The latest increase follows a -0.5% fall in output in Q4 last year, meaning that output has not grown in the past two quarters and is now at the same level seen in Q3 2010.

However, the GDP figures would have been better were it not for the fact that construction output fell by -4.7% in Q1, the largest quarterly fall since Q1 2009, and following on from a drop of -2.3% in Q4. National Statistics said that data from January and February had shown strength in new construction work, but weakness in repair and maintenance.

In its February Inflation Report the Bank of England forecast GDP to rise by 0.8% in Q1 and 2.4% on the year, and these weaker figures will give some members on the committee a further reason to delay a hike in the UK base rate.