| Consensus | Consensus Range | Actual | Previous | |
| Month over Month | -0.1% | -0.2% to 0.1% | -0.1% | 0.3% |
| 3-Months over 3-Months | 0.7% | 0.6% |
Highlights
The UK economy experienced a modest setback in April 2026, with monthly GDP contracting by 0.1 percent after two consecutive months of solid growth. The decline was primarily driven by a 0.2 percent fall in services output, highlighting some softness in the sector that accounts for the largest share of economic activity. Production output remained stagnant, while a 0.1 percent increase in construction provided only limited support to overall growth.
Despite the monthly weakness, the broader economic picture remains relatively resilient. Over the three months to April 2026, GDP expanded by 0.7 percent, marking an acceleration from the 0.6 percent growth recorded in the previous three-month period. This suggests that the underlying growth momentum of the economy remains intact.
Services continued to be the principal engine of expansion, recording robust growth of 0.8 percent over the three-month period. Construction emerged as a notable bright spot, growing by 1.6 percent and extending its recovery following a prolonged period of contraction. In contrast, production output fell by 0.1 percent, reflecting ongoing challenges in the industrial sector.
Put together, the latest data point to an economy that is slowing in the short term but remains supported by resilient service-sector activity and a strengthening construction industry, helping to offset persistent weakness in manufacturing and production. These latest updates take the RPI to 11 and the RPI-P to 21, meaning that economic activities continue to outperform market expectations in the UK.
Market Consensus Before Announcement
Forecasters see GDP down 0.1 percent on the month in April after a strong 0.3 percent increase in March.
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.