In April, the UK economy showed no growth, hindered by rainy weather and signs of a recovery from last year’s recession dwindling.
The Office for National Statistics (ONS) reported that economic growth stalled at 0.0% after a 0.4% increase in March. The retail sector struggled, manufacturing declined, and construction output fell.
This flat performance is a setback for Prime Minister Rishi Sunak, who had hoped for a strong economic rebound before the general election on July 4.
City economists had predicted this stagnation, attributing it to heavy rains disrupting construction and reducing foot traffic for retailers.
Shadow Chancellor Rachel Reeves criticized the government, stating that while Sunak claims the economy is recovering, actual growth has stalled.
Prime Minister Sunak’s recovery plans face setbacks amid slowing economic momentum.Sunak had previously asserted that the economy was “bouncing back” from last year’s downturn. In response to the latest figures, a Conservative spokesperson acknowledged the challenges but emphasized that inflation was decreasing, and the economy was improving.
April saw a 1.4% drop in manufacturing and construction, while retail trade fell by 2%. However, the services sector grew by 2%, driven by IT, professional services, and entertainment.
Paul Nowak, TUC General Secretary, condemned the government’s performance, noting that annual growth since 2010 has averaged just 1.5%, the worst since the Great Depression. He highlighted the decline in wages and the rise in unemployment.
Despite April’s stagnation, economist Paul Dales suggested the economy might recover in the summer as the impacts of high interest rates and inflation diminish.
Meanwhile, the OECD revised its UK growth forecast from 0.7% to 0.4% due to ongoing challenges like skills shortages and high prices.
Suren Thiru from the Institute of Chartered Accountants anticipated that these figures would likely prevent an interest rate cut by the Bank of England soon.