Construction output drops for third consecutive month
The UK economy was stagnant in April, with monthly real gross domestic product (GDP) showing no growth, following a 0.4% increase in March.
Real GDP grew by 0.7% in the three months leading to April, compared to the preceding three-month period ending in January.
The services sector saw a 0.2% increase in April, marking its fourth consecutive month of growth. Over the three months to April, services output rose by 0.9%.
GDP figures released by the Office for National Statistics on Wednesday showed a 0.9% decline in production output after a 0.2% rise in the previous month. However, production output still managed a 0.7% increase over the three months to April.
Construction output also dropped by 1.4% in April, continuing its decline for the third consecutive month. In the three months to April, construction output fell by 2.2%.
GDP was flat (0.0% growth) in April 2024 and grew 0.7% in the three months to April.
— Office for National Statistics (ONS) (@ONS) June 12, 2024
• Services grew 0.2%
• Production fell 0.9%
• Construction fell 1.4%
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“The market had low expectations for the UK economy in April, and it duly delivered,” commented Nicholas Hyett, investment manager at Wealth Club. “Economic growth was flat, held back by a third month in a row of contraction in the construction industry and weakness in the manufacturing sector.
“Admittedly, the numbers aren’t helped by rain that was 155% of the long-term average. That will be no surprise to anyone who’s lived through the wet and gloomy start to 2024, but has nonetheless severely dented output in house building and associated industries. After strong growth in March, it’s a return to a less than compelling trend.
“In an election month, where every data release will be being watched closely, there’s little here to change the narrative.”
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