Labor and the Lib Dems seized on the latest official growth figures as further evidence that the Tories had collapsed the economy, even as the report said momentum had been lost due to the wettest April in 12 years.
Britain’s economy stagnated in April, according to the first official data, which government critics seized on as evidence that the Tories’ announced plan is not working.
The Office for National Statistics (ONS) said there was zero growth in April, compared with 0.4% during March.
A Reuters poll of economists had forecast a 0% output, based on earlier evidence that wet weather had hit retail sales and construction output particularly hard.
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The GDP (gross domestic product) report from the ONS – the last published before the election – showed that total UK rainfall in April was 155% of the long-term average.
Construction output was found to have fallen by 1.4% as a result, the number crunchers said, also helped by weak demand for construction products in the manufacturing sector.
Manufacturing fell by 0.9%, while the powerful services sector – which accounts for almost 80% of total UK output – grew by just 0.2%.
Despite the emphasis on being hit by the rain, the numbers still represent a setback for Prime Minister Rishi Sunak’s key election argument that the economy is improving after successive hits from the COVID pandemic followed by a cost-of-living crisis.
The UK exited a short-term recession at the end of 2023 when growth of 0.6% was recorded in the first quarter of this year.
While economists continue to see growth in the three months to June, they expect growth of around 0.3% – half the pace achieved between January and March.
A final set of inflation data will be available before polling day on July 4, after which the Bank of England will decide on interest rates the following day.
Financial markets and economists see little chance of a rate cut, largely because wages are growing at a pace that risks further price rises after significant progress in the fight against inflation.
Shadow chancellor Rachel Reeves said of the ONS data: “Rishi Sunak says we have turned a corner but the economy has stalled and there is no growth.
The British economy stagnated in April
“These figures reveal the damage done after 14 years of Tory chaos.
“We are now in the third week of this election campaign and in that time the Labor Party has set out its plan to grow the economy by restoring stability, unleashing private sector investment and reforming our planning system.
“All the Tories are offering more of the same, with a desperate wish list of unfunded spending promises that mean £4,800 more on people’s mortgages. Rishi Sunak’s plan is a recipe for another five years of Tory chaos.”
Lib Dem Treasury spokeswoman Sarah Olney said the lack of growth in April showed the Tories had “absolutely failed” to deliver on their promises.
“As Rishi Sunak’s time as Prime Minister comes to an end, so does the UK’s economic growth,” she said.
“The Conservatives have absolutely failed to deliver the growth they repeatedly promised, instead presiding over stagnation and economic misery for hard-working families across the country.
“The Conservative manifesto shows that they simply lack the ambition and vision to get the economy moving again.
“It’s clear to voters across the country that the only way to do this is to vote them out on the Fourth of July.”
Commenting on the outlook, KPMG UK Chief Economist Yael Selfin said: “Outlook indicators point to renewed momentum in activity in the coming months, underpinned by improving consumer sentiment as wage growth remains strong.
“An early summer general election could help resolve political uncertainty, which could boost business investment.
“However, whichever party wins the election will have to contend with a number of supply-side challenges that will limit the UK’s long-term growth potential.
“We expect economic activity to remain historically sluggish this year with growth of only 0.5 percent.”