| Actual | Previous | |
|---|---|---|
| Month over Month | -0.3% | 0.2% |
| 3-Months over 3-Months | 0.7% | 0.7% |
Highlights
In April 2025, the UK economy experienced a modest contraction, with real GDP falling by 0.3 percent, reversing the 0.2 percent growth in March. This monthly decline was primarily driven by a 0.4 percent drop in services output, the sector that had previously buoyed the economy, indicating a potential cooling in consumer and business activity. Despite this setback, the broader three-month outlook remains positive, with GDP expanding by 0.7 percent, a trend underpinned mainly by earlier service sector gains.
Production output continued its monthly descent, falling by 0.6 percent in April after a 0.7 percent dip in March. However, it posted a robust 1.1 percent growth over the quarter, suggesting some underlying resilience. Construction emerged as the standout performer in April, growing by 0.9 percent and contributing steady gains across monthly and quarterly measures.
While a data error was noted in April's inflation estimates, it did not affect the GDP calculation. In essence, the mixed figures highlight the fragility of the economic recovery, with quarterly momentum dampened by sectoral volatility and potential inflationary uncertainties. Continued monitoring will be key to discerning whether April's downturn marks a temporary slip or a broader shift in trajectory. The latest update takes the RPI to 35 and the RPI-P to 24, meaning that economic activities remain well ahead of market expectations in the UK.
Production output continued its monthly descent, falling by 0.6 percent in April after a 0.7 percent dip in March. However, it posted a robust 1.1 percent growth over the quarter, suggesting some underlying resilience. Construction emerged as the standout performer in April, growing by 0.9 percent and contributing steady gains across monthly and quarterly measures.
While a data error was noted in April's inflation estimates, it did not affect the GDP calculation. In essence, the mixed figures highlight the fragility of the economic recovery, with quarterly momentum dampened by sectoral volatility and potential inflationary uncertainties. Continued monitoring will be key to discerning whether April's downturn marks a temporary slip or a broader shift in trajectory. The latest update takes the RPI to 35 and the RPI-P to 24, meaning that economic activities remain well ahead of market expectations in the UK.
Definition
Gross domestic product (GDP) is the broadest measure of aggregate economic activity and encompasses every sector of the economy. The monthly report is based on output data only as the income and expenditure series are not available.
Description
GDP covers all aspects of economic activity. Investors need to closely track the economy because it usually dictates how investments will perform. Stock market investors like to see healthy economic growth because robust business activity translates to higher corporate profits. GDP contains a treasure-trove of information which not only paints an image of the overall economy, but tells investors about important trends within the big picture. However, the monthly report is quite limited and only provides data on the main output sectors. More detailed information is available in the quarterly reports.
