In April, the UK economy contracted by 0.3%, contrary to expectations of a milder 0.1% decline, signaling a loss of momentum after a stronger first quarter. The Office for National Statistics pointed out drops in both services and manufacturing sectors. While past growth was fueled by a surge in exports to the U.S. to avoid tariffs, it now reveals underlying vulnerabilities. Inflation, high interest rates, and rising unemployment further aggravate the cautious economic outlook, coinciding with an upcoming Spending Review by Chancellor Rachel Reeves.
The UK economy contracted more sharply than expected in April, with GDP falling by 0.3%, indicating a loss of momentum and concerns for the economic outlook.
The downturn follows a period of artificially boosted growth, revealing underlying weaknesses, especially in services, which make up around 80% of the UK economy.
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