UK economy shrinks 0.3% as Covid testing ends

The UK economy contracted for the second month in a row in April, falling by 0.3 per cent, official figures showed on Monday.

It added to fears of a slowdown three days before the Bank of England announces the scale of its latest interest rate response to the surge in inflation.

All three main sectors suffered a fall in output for the first time since January 2021, the Office for National Statistics (ONS) said.

April’s drop in gross domestic product (GDP) was also the biggest contraction since January 2021 and follows a fall of 0.1 per cent in March.

However, households showed signs of resilience despite higher inflation. Consumer-facing industries expanded 2.6 per cent in the month, led by a strong rise in retail sales.

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