Economic growth stalls as weather dampens appetite for spending – Chamber
The wet weather dampened economic growth in the UK during April, business leaders said today.
The UK economy recorded no growth in April, according to data released this morning by the Office for National Statistics.
The ONS said Gross domestic product (GDP) was flat during the month, following growth of 0.4 per cent in March.
Economists had predicted that GDP would be flat in April, held down by weaker-than-usual retail sales over the Easter period.
The sluggishness comes after the UK economy recorded its fastest growth in two years from January to March, exiting the recession it fell into in the final half of last year.
Spending on services grew for the fourth month in a row, but this was off-set by falls in production and in the construction industry.
The UK's GDP, which measures the value of goods and services produced in a country over time, had grown 0.4 per cent in March.
Raj Kandola (pictured), director of external affairs at Greater Birmingham Chambers of Commerce, said: “In line with many city analysts’ projections, economic growth stagnated in April as activity fell in both the services and manufacturing sector.
“Heavy rain in April is likely to have dampened appetite for spending and businesses will be hoping that better weather and a good run for England in Euro 2024 will drive demand.
“Locally, data from our Quarterly Business Report reveals that businesses are still facing a raft of cost pressures linked to labour market challenges and supply chain disruption.
“As we saw in yesterday's ONS release, the pressure caused by stubborn wage growth means the likelihood of an immediate interest rate cut remains minimal - especially in the midst of a General Election campaign.
“Ultimately, the business community will judge the offer from each political party on their own merits - creating a plan that tackles structural challenges around investment, skills and embracing new technologies will need to figure highly on the agenda.”
