Yahoo Finance UK economy flatlines in April as bad weather hits spending
The UK economy showed no growth in April, stalling the muted rebound from last year’s recession.
The Office for National Statistics (ONS) said there was zero growth in April compared to the 0.4% growth recorded during March.
The economy was unable to maintain momentum after being weighed down by the struggling factory and construction sectors.
Construction output fell by 1.4% in April 2024, its third consecutive monthly fall, and factories fell by 2.2% in the three months to April 2024. It was also the third consecutive monthly fall for the sector.
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The manufacturing sector also saw production plunge by 1.4%, having been expected to fall by 0.2%.
GDP was flat (0.0% growth) in April 2024 and grew 0.7% in the three months to April.
• Services grew 0.2%
• Production fell 0.9%
• Construction fell 1.4%
Read more ➡ https://t.co/ZZfs4but9V pic.twitter.com/eWoIkSHnhL— Office for National Statistics (ONS) (@ONS) June 12, 2024
Experts blamed a negative impact from wet weather, knocking both retail sales and construction output. Services output grew by 0.2% in April 2024, its fourth consecutive monthly growth.
Lindsay James, investment strategist at Quilter Investors, said: “The great British weather can be thanked for Wednesday’s poor GDP figures, as persistent rain has kept consumers from spending and caused economic growth to grind to a halt for the month with no growth registered.
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"With rainfall in April 55% higher than average and the wettest April since 2012, it is perhaps no surprise to see the economy struggle as a result, with sectors such as retail, construction and pubs all severely impacted."
Zero growth in #UK #GDP in April but not as bad as it sounds - services still expanding at decent pace, offset by falls in production and #construction (wet weather). PMI surveys for manufacturing and construction were better in May.
On less volatile 3m/3m basis, GDP rose 0.7%. pic.twitter.com/jDQ1OwTy8x— Julian Jessop FRSA (@julianHjessop) June 12, 2024
The UK eked out moderate growth in the first three months of the year, leading to an exit from a shallow recession for the first quarter as a whole.
The economy is a key battleground for the main political parties in the run-up to the general election on 4 July, with the latest figures delivering a blow to Rishi Sunak’s hopes of recovery.
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The prime minister had said Britain’s economy has “turned a corner” after it exited recession in the first three months of the year .
Paul Dales, chief UK economist at Capital Economics, said: "The stagnation in GDP in April doesn’t mean the economic recovery has been extinguished, but it’s hardly great news for the prime minister three weeks ahead of the election."
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