The UK economy showed no growth in April, a point seized upon by critics of the Conservative government’s economic policies.
Official data from the Office for National Statistics (ONS) reported zero growth in April, following a 0.4% increase in March.
This flat performance aligns with economists’ forecasts, which had anticipated the impact of adverse weather conditions on retail sales and construction output.
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The latest GDP report from the ONS, the final one before the upcoming election, highlighted that April’s rainfall was 155% of the long-term average. This led to a 1.4% decline in construction output and a 0.9% drop in production. The services sector, which makes up nearly 80% of the UK’s total output, saw a modest growth of just 0.2%.
Prime Minister Rishi Sunak’s key election narrative—that the economy is on the mend—faces a setback with these figures. The UK had recently emerged from a brief recession at the end of 2023, posting a 0.6% growth in the first quarter of the current year. However, economists now predict a slower growth rate of around 0.3% for the three months to June, half the rate achieved between January and March.
As the general election approaches on July 4, significant economic updates are expected, including the final inflation figures and a crucial Bank of England interest rate decision. Despite substantial progress in reducing inflation, financial markets and economists see little likelihood of a rate cut on June 20 due to wage growth pressures.
Chancellor Jeremy Hunt remains optimistic, stating, “There is more to do, but the economy is turning a corner and inflation is back down to normal.” He emphasized the Conservative plan to foster economic growth by cutting taxes on work, homes, and pensions.
In contrast, Shadow Chancellor Rachel Reeves criticized the government’s performance, arguing that the lack of growth contradicts Sunak’s claims of economic improvement. She emphasized Labour’s plan to revive the economy through stability, private sector investment, and planning system reforms.
Liberal Democrat Treasury spokeswoman Sarah Olney echoed these sentiments, describing the Conservatives’ economic strategy as a failure, resulting in stagnation and economic hardship for families. She called for voters to oust the Conservative government in the upcoming election.
KPMG UK’s chief economist Yael Selfin offered a cautious outlook, noting that while consumer sentiment and pay growth might drive some economic momentum, supply-side challenges would likely limit long-term growth. Selfin predicted the UK’s economic activity would remain sluggish, with growth expected to reach just 0.5% this year.
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