UK economy shrinks by 0.3pct in April, ONS says
LONDON: Britain's economic output contracted by a worse-than-expected 0.3 per cent in April, when shockwaves from US President Donald Trump's announcement of wide-ranging tariffs hit the global economy, official data showed on Thursday.
A Reuters poll of economists had forecast that Britain's gross domestic product would fall by 0.1 per cent in April compared with March's level.
Britain's economy expanded by 0.7 per cent in the first quarter of 2025, outstripping growth in other countries in the Group of Seven advanced economies and prompting the Bank of England to revise up its full-year growth forecast to 1 per cent last month.
However, the BoE revised down its growth forecast for 2026 to 1.25 per cent and said it expected the tariffs to knock 0.3 per cent off British output in three years' time.
BoE policymakers who are expected to hold interest rates next week are faced with competing forces of stubborn inflation and a relatively sluggish economy.
A closely-watched business survey earlier this month suggested much of the economy returned to tepid growth.
Business surveys of British firms have generally been downbeat and shown firms slowed their hiring and investment plans due to big increases in labour costs announced by finance minister Rachel Reeves last October.
Data published this week showed a fall in consumer spending in May.
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