While the austerity measures will bite, in the UK, like much of the world, automatic fiscal stabilizers (rising transfer payments and lower tax revenues) got their deficits up high enough to reverse the downturns in GDP, and deficits remain high enough for modest growth.

The UK had weather issues in December, which are reversing.

As the austerity measures continue to come on line, they will drain off some of the aggregate demand being added by the counter cyclical deficits and keep a damper on growth.

It’s just a guess, and there are other factors as well (oil prices, China slowdown, etc.) but I suspect the actual slowdown from the austerity is still down the road a piece.

UK Headlines:

U.K. Construction Grew Fastest in Eight Months in February
King Says Raising Rate to Make a Gesture Is Self-Defeating
RBC Says Stronger Pound Highlights View BOE’s King Faces Defeat
UK House Prices Stage Surprise Rise as Mortgage Approvals Also Up