April saw stagnation in the UK’s economic growth, aligning with forecasts.
- The Office for National Statistics reported zero GDP growth for April, following a 0.4% rise in March.
- Wet weather negatively impacted retail sales, a significant factor in the economic flatline.
- The service sector witnessed minor growth, though retail sales dropped by 2.3%.
- Political responses to the data varied, highlighting differing interpretations of economic conditions.
The UK’s real GDP remained unchanged in April, according to data released by the Office for National Statistics. This flatlining follows a modest growth of 0.4% in March, meeting the expectations of many analysts. The unchanged economic performance is attributed primarily to weakened retail sales, exacerbated by adverse weather conditions that dissuaded consumer activity.
Despite overall stagnation, the services sector experienced a slight 0.2% increase in output, marking its fourth consecutive month of growth. However, this progress was overshadowed by a 2.3% decline in retail sales, following a smaller decline in March. The downturn in retail is largely attributed to wet weather that kept shoppers at home, thus diminishing retail’s contribution to services growth.
In the broader context, March’s 0.4% growth had signaled the end of the UK’s technical recession, with a quarterly GDP increase of 0.6% from January to March 2024. This recovery followed a contraction of 0.3% from the previous quarter. The recent economic data arrives just after the release of the Conservative party’s manifesto, which claims improvements in inflation rates, wage growth, and overall economic performance.
Political figures have responded to the static GDP figures with differing viewpoints. Prime Minister Rishi Sunak expressed optimism, pledging enhancements in apprenticeship opportunities and support for small businesses through business rate reforms. Conversely, Shadow Chancellor Rachel Reeves remarked on social media that, despite claims of economic recovery, the latest data depicts a stalled growth trajectory, reflecting ongoing economic challenges.
The UK’s economic performance in April highlights ongoing vulnerabilities, particularly in the retail sector.
