UK economy shrinks by 0.3% in Apri

The UK economy shrank by more than expected in April. The Office for National Statistics (ONS) said that the UK's gross domestic product (GDP) shrank by 0.3% in April, which was more than the 0.1% contraction expected by economists. The fall followed growth of 0.2% in March and a 0.7% rise in GDP in the first quarter. The largest contributor to the fall in GDP in April was a 0.4% fall in services output, the ONS said. Production output fell by 0.6% in April, while construction output grew by 0.9% that month. The fall in UK economic growth came as an increase in employer national insurance contributions and the national minimum wage, which were announced in the autumn budget, came into place in early April. Chancellor Rachel Reeves said, 'The numbers are disappointing'. Earlier, Reeves unveiled a raft of pledges in the government spending review. We are investing to get Britain building again, she said.

National renewal to make working people better off. pic.twitter.com/bFj2vRf8Kt

— Rachel Reeves (@RachelReevesMP) June 11, 2025

Separate ONS data released on Thursday showed that UK exports to the US fell by £2bn in April, which it said was likely linked to the implementation of tariffs. US president Donald Trump announced sweeping global tariffs on imports of goods into the US on 2 April, on what he dubbed "Liberation Day". The UK and US announced a trade pact on 8 May, cutting certain tariffs on cars and steel, though a broader 10% duty on many other goods remained in place. Uncertainty also remains over US agreements with other trading partners in the wake of Liberation Day.