UK economy stagnates in April

12th Jun 2024 07:39

(Sharecast News) - The UK economy stagnated in April, according to figures released by the Office for National Statistics on Wednesday, having just come out of a recession a month earlier.

GDP was flat, in line with analysts' expectations, following 0.4% growth in March.

The data showed that output in services grew 0.2% in April, the fourth consecutive monthly growth, and by 0.9% in the three months to April.

Output in production fell 0.9% following 0.2% growth in March, but was up 0.7% in the three months to April.

Meanwhile, construction output declined by 1.4% in April - the third consecutive monthly fall - and by 2.2% in the three-month period.

The manufacturing and construction sectors took a hit from wet weather. The ONS said overall rainfall in April was 155% of the long-term average according to the Met Office's Monthly Climate Summary.

Paul Dales, chief UK economist at Capital Economics, said: "Overall, despite the stalling of the recovery in April, the dual drags on economic growth from higher interest rates and higher inflation will continue to fade throughout the year.

"That will generate a bit of an economic tailwind for the next government."