GDP monthly estimate, UK: April 2025 + reactions
Summary Gross domestic product (GDP) measures the value of goods
and services produced in the UK. It estimates the size of and
growth in the economy. Publications GDP monthly estimate, UK: April
2025 Chancellor of the Exchequer, Rachel Reeves Said: "Our number
one mission is delivering growth to put more money in people's
pockets through our Plan for Change, and while these numbers are
clearly disappointing, I'm determined to deliver on that...Request free trial
Summary
Gross domestic product (GDP) measures the value of goods and services produced in the UK. It estimates the size of and growth in the economy. PublicationsChancellor of the Exchequer, Rachel Reeves Said: "Our number one mission is delivering growth to put more money in people's pockets through our Plan for Change, and while these numbers are clearly disappointing, I'm determined to deliver on that mission. "In yesterday's spending review we set out how we'll deliver jobs and growth - whether that's improving city region transport, a record investment in affordable homes or funding Sizewell C nuclear power station. We're investing in Britain's renewal to make working people better off". Conservative response to GDP figures Mel Stride MP, Shadow Chancellor of the Exchequer, said: “Before the election Labour promised "growth, growth, growth" but today's fall in GDP lays bare the disappointing consequences of Rachel Reeves' economic vandalism. “Yesterday, the Chancellor should have taken corrective action to fix the problems she has caused. But instead her Spending Review has all but confirmed what many feared: more taxes are coming. “Under Labour, we have seen taxes hiked, inflation almost double, unemployment rise, and growth fall. With more taxes coming, things will only get worse and hardworking people will pay the price.” ENDS Notes to Editors:
Responding to the latest GDP data, published by the ONS this morning, Stuart Morrison, Research Manager at the British Chambers of Commerce said: “With 0.7% growth in the 3 months to April, the UK economy enjoyed a strong start to the year as firms increased trade ahead of the volatility of tariff announcements. “However, a larger than expected fall in GDP for April suggests the UK is now turning more squarely into headwinds. “The UK's partial trade deal with the US has offered some relief, but the lowering of tariffs on steel, aluminium and automotives is not yet fully assured. “This continued uncertainty will inevitably hamper firms' investment decisions and long-term growth prospects. “Our research also shows 82% of firms think the National Insurance rise will impact their operations - hitting investment, recruitment and prices. “While yesterday's spending review offered some welcome investment in infrastructure, which will benefit supply chains, businesses will be keen to see further action from government. “A clear tax roadmap, covering national insurance and business rates, would give them some certainty to plan for the future. “Additionally, a timeline for when they might see practical changes to UK-EU trading arrangements would also be very welcome by firms navigating ongoing trade uncertainties.” IoD: Weak April data underscores need for business-focussed growth plan Commenting on ONS data that showed GDP fell by 0.3% in April 2025, following 0.2% growth in GDP in March, Anna Leach, Chief Economist at the Institute of Directors, said: “This is a disappointing number and one that incorporates a decline in service sector output for the first time since October 2024. But there are signs that the expiration of the stamp duty holiday in April may be exaggerating the downside surprise in the data. The ONS note that conveyancing and real estate both cited a significant impact from the policy. Meanwhile volatility around so-called “Liberation Day” tariffs may have left a mark too. “As we head into the second half of the year, momentum from a strong Q1 should provide a bit of a tailwind to growth. But the broader supports to growth are rocky. On the consumer side, while balance sheets are strong and interest rates have come down, rising unemployment risks causing consumers to hit pause on purchases. Businesses report widespread caution in both the UK and globally as heightened uncertainty and the passthrough from a significant rise in the cost and risk of employment play through to sluggish demand. The Spending Review represents a decent allocation of revenues across public service delivery and infrastructure investment, but we await a more comprehensive plan for delivering the UK's economic renewal which has business at its heart.” TUC - Spending Review will help economy continue to strengthen Commenting on today's (Thursday) ONS figures, showing GDP falling 0.3% in April but rising 0.7% in the three months to April, TUC General Secretary Paul Nowak said: “Despite a challenging international context, these figures show the economy continues to strengthen. Improving retail sales show growing consumer confidence and construction growth is also up. As the ONS report, some economic activity was brought forward to March, which has affected today's overall data. “The Spending Review has provided an important foundation for future growth. Funding for key infrastructure projects will help deliver industrial revival, and much needed cash injections will start to fix our public services. “The Bank of England must do its part too. We need further interest rate cuts soon to ease the pressure on household budgets and to make it more affordable for businesses to invest.”
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