- UK GDP showed no growth in April
- Heavy wind and rain further dampened a soggy construction sector
- Service sector performed well but consumer facing services struggled as shoppers deserted high streets
Danni Hewson, head of financial analysis at AJ Bell, comments on the latest UK GDP figures:
“April’s lack of growth should come as no surprise. ‘Rain stopped play’ is the best way to describe things as builders shunned roof tops and shoppers deserted high streets in favour of their warm, dry sofas.
“The long-term trend for construction is more worrying. Output has fallen for three consecutive months and there’s little surprise that so much focus has been placed on housebuilding by political parties, all hoping their policies can deliver a sustained growth spurt for the UK.
“But no growth is better than negative growth and taken alongside the latest wage figures there doesn’t appear to be much evidence to suggest that Bank of England ratesetters will feel ready to change course quite yet. And there’s already a frisson of excitement in the air that big events like the Euros and Taylor Swift’s Eras tour will help deliver a decent boost to the economic picture by the time we get the half-year result.
“With inflation cooling and wage growth now being felt in people’s pay packets there is a sense that the momentum seen at the start of the year is likely to return. The trick will be keeping the engine running smoothly, putting in the right kind of fuel and the right kind of investment to get us out of neutral and into a much higher gear.”
