The UK economy ground to a halt in April as a sharp contraction in construction activity offset modest gains in the services sector, according to official figures from the Office for National Statistics.
Gross domestic product showed zero growth between March and April, falling short of economists' expectations and dealing a blow to Chancellor Jeremy Hunt's economic recovery plans. The stagnant performance follows 0.4% growth in March.
Construction Sector Collapse
The construction industry suffered a dramatic 1.9% decline in output during April, representing the sector's poorest performance since January 2023. This sharp downturn proved sufficient to neutralise the 0.2% growth recorded in the dominant services sector.
"The construction sector's struggles have become a significant drag on our economic momentum," noted one industry analyst. "This isn't just a statistical blip - we're seeing real weakness in building projects and infrastructure development."
Services Sector Provides Limited Relief
While the services sector managed to maintain positive territory, its 0.2% growth represented a significant slowdown from the 0.5% expansion seen in March. The human health and social work sub-sector emerged as the strongest performer within services, though this wasn't enough to compensate for the construction collapse.
Production output also disappointed, registering flat growth of 0.0% after a 0.2% decline in March, adding to the overall economic stagnation.
Political and Economic Implications
The disappointing figures arrive at a sensitive political moment, with the Conservative government hoping to showcase economic progress ahead of the next general election. Chancellor Jeremy Hunt faces increased pressure to stimulate growth while maintaining fiscal discipline.
"These numbers create a real headache for the Treasury," commented a political observer. "Zero growth undermines the government's economic narrative and limits the Chancellor's options for pre-election tax cuts or spending increases."
Economists warn that without a sustained recovery in both construction and manufacturing, the UK risks entering a period of prolonged economic stagnation, potentially complicating the Bank of England's decisions on interest rates.
