UK GDP Contracts In April
The UK economy shrank more than expected in April largely reflecting a fall in services output, the Office for National Statistics reported Thursday.
Real gross domestic product declined 0.3 percent month-on-month in April, following a growth of 0.2 percent in March. This was the biggest fall since October 2023. GDP was expected to drop marginally by 0.1 percent.
The production-side of GDP showed that services output contracted 0.4 percent, reversing March’s 0.4 percent rise.
Industrial production decreased 0.6 percent, which was slightly slower than a 0.7 percent drop in March. By contrast, construction output grew at a faster pace of 0.9 percent after rising 0.5 percent a month ago.
In the three months to April, the economy expanded 0.7 percent from the previous three months largely driven by growth in the service sector.
Compared with April 2024, GDP advanced 0.9 percent, the ONS said.
Another report from the ONS showed that the visible trade deficit widened to GBP 23.2 billion in April from GBP 19.9 billion in the previous month. The deficit was forecast to rise to GBP 20.8 billion.
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