The UK economic slowdown continued in April with the most significant decline in a year, causing investors to worry that economic risks would contract in the second quarter.
The Office for National Statistics (ONS) reported on Monday that gross domestic product (GDP) fell by 0.3% in April from a 0.1% decline recorded the previous month. It also fell short of expectations to increase by 0.2%.
Among the main contributors to this decline was a fall in service output with a 5.6% decline in human health and social work, where there was a significant reduction in NHS Testing and Detection activity following the completion of the Covid-19 control measure.
If not for the decline, the economy would have grown 0.1% in April.
Meanwhile, households showed signs of being more resilient despite soaring inflation. The consumer -facing industry grew 2.6% during the month, led by a strong increase in retail sales.
This suggests that consumers are responding slowly to a 54% increase in energy bills and an increase in government payroll taxes, seeing households reduce purchases of non -essential goods.
These recorded figures raise various possibilities against the decision of the Bank of England (BOE) at a policy meeting to be held on Thursday.
