UK economy stagnates in April

The UK economy stagnated in April as wet weather was blamed for dampening consumer spending. The Office for National Statistics reported zero growth for the month, aligning with economists' expectations.

This slowdown comes after the UK economy experienced its fastest growth in two years from January to March, signaling its emergence from the recession encountered in the latter half of last year.

While spending on services rose for the fourth consecutive month, it was offset by declines in production and the construction industry.

The UK's gross domestic product, which measures the value of goods and services produced over time, grew by 0.4% in March.

Certain segments of the services industry outperformed others. The information, communication, and scientific sector experienced the most growth, while shop trade declined.

The ONS reported that some retail businesses cited a dent in their output due to the wetter weather, with rainfall for the month significantly above the long-term average.

Output in consumer services, many of whom are still grappling with steep rises in the cost of living, declined by 0.7%.

Economists caution against giving excessive importance to changes in economic activity over a single month, as they can be influenced by factors such as weather conditions or the timing of holidays like Easter.

Over the three months leading to April, the economy expanded, rising by 0.7% from February to April. The figures will be taken into consideration by the Bank of England next Thursday when it convenes to determine its course of action regarding the interest rate.

Many individuals are grappling not only with increased energy and food expenses but also with higher mortgage payments as interest rates have risen, a move the central bank made in an attempt to address price hikes.

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