In April, the UK’s economic growth showed no change, according to the latest data from the Office for National Statistics (ONS).
- The stagnation was expected by analysts, with contributing factors including weak retail sales due to inclement weather.
- While services output saw a slight increase, retail made the largest negative impact on this sector.
- The Conservative party claims economic recovery, but criticism follows stagnant GDP figures.
- Prime Minister Rishi Sunak and Shadow Chancellor Rachel Reeves express differing views on the economic outlook.
In April, the UK’s economy experienced stagnation, with a real gross domestic product (GDP) showing no month-on-month growth. This data, released by the Office for National Statistics (ONS), aligns with analyst expectations and points to weak retail sales as a significant factor in this flatlining.
April’s economic performance was notably impacted by adverse weather conditions that diminished footfall, leading retail sales volumes to decline by 2.3%. This followed a smaller decline of 0.2% in March 2024. The drop in retail activity marked the largest negative contribution to the services sector’s growth, which otherwise managed a modest increase of 0.2%.
The preceding month of March had seen a GDP growth of 0.4%, a signal that the UK was emerging from its technical recession. On a quarterly scale, GDP from January to March 2024 grew by 0.6%, recovering from a 0.3% decline observed in the last quarter of 2023.
Despite these figures, the political narrative remains contentious. The Conservative party’s manifesto, released recently, asserts positive economic indicators such as reduced inflation and rising real wages. Prime Minister Rishi Sunak has expressed optimism, citing commitments to enhance apprenticeships, bolster local high streets, and provide small business support via adjusted business rates.
Conversely, Shadow Chancellor Rachel Reeves has publicised a critical stance, highlighting the stagnant economy. On social media, she voiced scepticism regarding Sunak’s claims of economic turnaround, emphasising the absence of growth.
April’s unchanged GDP reflects ongoing challenges for the UK economy, amid contrasting political views.
