UK economy shrinks 0.3% in April, raising slowdown concerns -Breaking
LONDON (Reuters) -Britain’s economic system unexpectedly shrank by a month-to-month 0.3% in April, official figures confirmed on Monday, including to fears of a slowdown three days earlier than the Financial institution of England declares the size of its newest rate of interest response to the surge in inflation.
Economists polled by Reuters had on common anticipated gross home product (GDP) to develop by 0.1% in April from March.
The Workplace for Nationwide Statistics mentioned the info represented the primary time that each one most important financial sectors had contributed negatively to a month-to-month GDP estimate since January 2021.
Nonetheless, GDP would have grown by 0.1% excluding the affect of a scaling again of the federal government coronavirus test-and-trace and vaccination programmes, the ONS mentioned
Over the three months to April, GDP was up by 0.2%, slowing sharply from progress of 0.8% within the three months to March. The Reuters ballot had pointed to 0.4% progress within the February-April interval.
Some economists mentioned earlier than Monday’s information that they had anticipated April’s leap in home energy tariffs and a rise in taxes paid by employees launched in the course of the month to affect the month-to-month GDP information solely in Could.
(Reporting William Schomberg and Andy Bruce; modifying by Kylie MacLellan)