United Kingdom: Economic activity rebounds in April
GDP grew 0.2% in month-on-month seasonally-adjusted terms in April, which contrasted March’s 0.3% decrease and was in line with market expectations. April’s reading was largely driven by a rebound in the services sector. In contrast, manufacturing and construction activity fell.
On a rolling quarterly basis, GDP increased 0.1% in February–April, matching January–March’s uptick.
Looking ahead, GDP in May will be weighed on by the extra bank holiday in the month for the King’s coronation. As such, underlying momentum will be brighter than the headline reading suggests. That said, stubborn inflation, rising interest rates and the competitiveness losses stemming from Brexit will continue to cap activity.