The UK’s GDP in April showed no growth, aligning with expectations.
- A decrease in retail sales, affected by adverse weather, contributed to the stagnation.
- Despite the overall stagnation, services output grew for the fourth consecutive month.
- Political statements reflect mixed reactions to the economic data.
- The latest figures follow a 0.4% increase in GDP during March, ending a technical recession.
The Office for National Statistics (ONS) reported that the UK’s real gross domestic product (GDP) was unchanged in April, after a 0.4% rise in March. This stagnation in economic growth was anticipated by analysts.
Weak retail sales played a significant role in this stagnation. Retail volumes decreased by 2.3% in April, after a smaller decline of 0.2% in March. The adverse weather conditions during the month negatively impacted footfall, contributing to this downturn.
Despite the overall stagnation, the services sector continued to expand, with output increasing by 0.2% in April. This marks the fourth consecutive month of growth for the sector, although retail was a notable drag on its performance.
From January to March 2024, GDP grew by 0.6% on a quarterly basis, following a 0.3% contraction in the last quarter of 2023, marking the end of the UK’s technical recession.
The political landscape has been stirred by these economic figures. Prime Minister Rishi Sunak highlighted improvements in inflation and wages, while the opposition pointed out the lack of growth, with Shadow Chancellor Rachel Reeves stating, “Rishi Sunak claims we have turned a corner, but the economy has stalled and there is no growth.”
April’s GDP figures underscore ongoing challenges in the UK’s economic recovery, with both political and market implications.
