GDP: UK economy fails to grow during wet April

The UK economy failed to grow in April as particularly wet weather put off buyers and slowed construction.

The official data is what most economists had expected and comes after the fastest growth in two years from January to March, ending the recession from the last half of last year.

The economy is a key battleground ahead of the July 4 general election, with the main parties debating whether the latest figures point to a continued recovery or stagnation.

The Tories argue they show the economy has “turned around”, while Labor says they “expose the damage done”.

Figures from the Office for National Statistics (ONS) show that spending on services, which includes everything from hairdressers to hospitality, rose for the fourth consecutive month.

However, this was offset by declines in manufacturing and the construction industry.

The UK’s Gross Domestic Product (GDP), which measures the value of goods and services produced in a country over time, rose 0.4% in March.

Some parts of the service industry performed better than others.

The information, communication and science sector grew the most, while retail trade fell.

The ONS said some retail businesses told them their output was down because of the wetter weather, with rainfall for the month well above the long-term average.

However, he added that it was “difficult to quantify the exact impact” of the rainfall.

Output of services for consumers, many of whom are still struggling to cope with the steep rise in the cost of living, fell 0.7%.

Economists also caution against putting too much weight on changes in economic activity over a month, because they can be affected by factors such as the weather or the timing of the Easter holiday.

During the three months of April, the economy grew by 0.7% from February to April.

The Bank of England will look at the figures along with a number of others next Thursday when it meets to decide what to do about interest rates.

However, most economists do not believe Wednesday’s update will have much of an impact on the decision, as it was broadly in line with expectations.

Many people are struggling not only with higher energy and food bills, but also higher mortgage payments as interest rates have risen, which the central bank has raised in a bid to tackle rising prices.

One person who has seen the impact of rising prices first-hand is Mark Breen, who runs the Old Kent Roastery in Margate.

Despite his expenses rising, he hasn’t raised prices in years because he’s worried about scaring away customers.

“We’ve got some people, especially in the winter, they come in and have a coffee and hang out here all day, it’s the way of life at the moment, people can’t afford to buy things.

“I’m lucky, I have a business. We’re surviving, but a lot of people aren’t.”

The latest data comes in the third week of a campaign period where promises about economic growth have played a key role.

Chancellor Jeremy Hunt said the data showed the economy was “turning a corner”.

“Under the Tories, we can keep the economy growing with our clear plan to cut taxes on work, homes and pensions,” he added.

However, Labour’s Shadow Chancellor Rachel Reeves took aim at the flat reading seen in April, saying: “These figures expose the damage done after fourteen years of Tory chaos”.

Liberal Democrat Treasury spokeswoman Sarah Olney said: “As Rishi Sunak’s time as Prime Minister wears on, so does UK economic growth.”

Economists had mixed views on the meaning of the latest figures. Some said it was “positive”, while others said it was “suffocating”.

AJ Bell’s head of financial analysis Danni Hewson said “no growth is better than negative growth” but described the three-month slump in construction as “worrying”.

“It’s no surprise that so much focus has been placed on house building by political parties,” she added.