The UK’s GDP grew by 0.2% in April, according to official estimates

UK GDP in April grew by 0.2% in April 2023, after a 0.3% decline in March, according to estimates released on Wednesday (14) by the Office for National Statistics. In the quarter ending in April, the economy was expected to grow by 0.1%, according to estimates.

For the month, forecasts are that the services sector grew 0.3% in April, after falling 0.5% in March, becoming the main contributor to monthly GDP growth in April. Specifically, consumer services production grew 1.0%, after a 0.8% decline in March.

But the productive sector, especially manufacturing, fell by 0.3% in April 2023, after growth of 0.7% in March 2023. The construction sector fell by 0.6%, compared to a previous growth of 0.2%.

For Luke Newman, portfolio manager at Janus Henderson, even with UK GDP in April appearing slightly weaker than expected, the domestic economy is performing much better than the worst fears at the start of the year.

“Relief in the form of lower energy prices, a recovery in industrial employment in March, and confidence in labor markets contributed to the moderate expansion, although tighter inflation dynamics resulting from this increase in consumer spending and salary changes in settlement agreements mean continued challenges ahead for workers in The private sector. He commented, “It is the Bank of England that sets interest rates.”