The UK’s economic progress remained stagnant in April, aligning with the expectations of analysts.
- April saw the UK’s gross domestic product (GDP) showing no growth, in contrast to a 0.4% increase recorded in March.
- Retail sales suffered a significant downturn, with volumes dropping by 2.3%, mainly due to adverse weather conditions.
- While the service sector managed a modest growth of 0.2%, it was insufficient to offset the declines in retail.
- Political figures exchanged views on economic growth, with differing opinions on the future outlook.
The Office for National Statistics reported that the UK’s GDP remained flat in April, showing no change from the previous month. This stagnation aligned with forecasts from analysts and followed a 0.4% growth in March, hinting at instability in economic recovery.
The retail sector faced considerable challenges, with sales volumes plummeting by 2.3% in April. Adverse weather conditions significantly reduced consumer footfall, exacerbating the retail downturn, with a preceding minor decline of 0.2% in March.
Despite the retail struggles, the service sector experienced a 0.2% growth, marking a fourth consecutive month of increases. However, the improvement was insufficient to counterbalance the declining retail figures, emphasising the sector’s mixed performance.
In a broader economic context, the GDP had increased by 0.6% in the first quarter of 2024, recovering from a 0.3% contraction at the end of 2023. This highlighted a tenuous economic recovery, impacted by varied sector performances.
Political discourse intensified as the Conservative party, in their manifesto, claimed progress with inflation and wages, while shadow chancellor Rachel Reeves countered these assertions by highlighting the stalled economic growth. Prime Minister Rishi Sunak’s promises to boost apprenticeships and support high streets were met with scepticism from opposition leaders.
The UK’s economic stagnation in April underscores the volatile recovery path amidst sectoral challenges and political debates.
