The UK economy experienced a notable contraction of 0.3% in April, marking its steepest decline in nearly two years, attributed to increasing taxes on businesses, surging household bills, and a sharp drop in exports to the US. This downturn comes in contrast to the recent growth initiatives outlined by Chancellor Rachel Reeves, who emphasized long-term investments despite the disappointing economic figures. The services and manufacturing sectors particularly struggled, influenced by recent tariff changes impacting the UK's major export of vehicles to the US and the overall weak performance in the retail sector.
After increasing for each of the four preceding months, April saw the largest monthly fall on record in goods exports to the United States with decreases seen across most types of goods, following the recent introduction of tariffs.
Chancellor Rachel Reeves prioritised long-term investments over day-to-day spending. She said the latest figures on the economy were "clearly disappointing" but added she was "determined to deliver" growth.
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