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The UK economy has experienced quarterly growth of 0.7% in the three months to April 2024, according to the latest GDP data from the Office of National Statistics (ONS).
The services sector, the largest part of the economy, was the main contributor to growth, up 0.9% over the three months to April 2024. The professional, scientific and technical activities, transportation and storage, and IT and communications sectors were among the best performing subsectors, with the accommodation sector and motor trade among outliers seeing decline.
Production output also rose 0.7%; however, the construction sector saw a 2.2% fall in output over the quarter, with private commercial new work down 4.7%.
However, monthly estimates from the ONS reveal the UK economy saw zero growth in April compared to the previous month and down on the 0.4% growth seen in March. Despite the stagnation across the economy as a whole in April, the services sector also outperformed the rest of the economy with 0.9% growth.
Growth in the services sector in April balanced out falls in output for both the production sector, which contracted 0.9%, and the construction industry, which experienced 1.4% decline. In part, the ONS has pointed to the wet weather throughout April as limiting the output of the some industries, particularly construction, retail and hospitality and tourism-driven industries.
Slowed growth reported by the ONS for April, coupled with higher wage growth, has now dampened prospects that the Bank of England’s Monetary Policy Committee will lower interest rates this month.