FEARS that UK economic growth slowed further in the first quarter have been fuelled by official figures showing industrial production rose just 0.1 per cent in February.
This slight rise followed a 0.1 per cent drop in January. The City had forecast industrial production would have risen by 0.3 per cent in February.
And separate official figures showed a 0.9 per cent month-on-month drop in UK construction output in February.
The poor economic data weighed on the pound, which fell to a five-year low of around $1.4585 during the session.
Howard Archer, chief UK economist at consultancy IHS Global Insight, said: "Only marginal growth in industrial production and a further drop in construction output in February significantly raise the probability that UK GDP (gross domestic product) growth moderated in the first quarter of 2015 from the 0.6 per cent quarter-on-quarter rate seen in the fourth quarter of 2014.
"Given that the first-quarter GDP data will be released at the end of April, this would be very unwelcome news for the Conservatives and Liberal Democrats so close to the General Election, given their hopes that many undecided voters will ultimately decide to reward them for the economy's improvement."
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