UK Economy Shrinks 0.1% in April as Services and Construction Decline

April GDP contraction matches forecasts but signals weakening momentum after March’s 0.3% growth. The UK economy contracted by 0.1% in April, matching expectations, as services and construction output fell sharply. The decline follows a 0.3% expansion in March, marking a s

April GDP contraction matches forecasts but signals weakening momentum after March’s 0.3% growth.

The UK economy contracted by 0.1% in April, matching expectations, as services and construction output fell sharply. The decline follows a 0.3% expansion in March, marking a slowdown in economic activity.

Services output dropped 0.1% month-over-month, missing forecasts for flat growth, while construction output plunged 0.4% against expectations of a smaller decline. Industrial production rose 0.1%, slightly below the anticipated 0.2% gain, and manufacturing output fell 0.2%, reversing March’s 1.2% surge.

The data underscores weakening demand amid persistent inflation and higher borrowing costs, though the print aligned with consensus estimates.

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