The UK economy contracted for the second month in a row in April, falling by 0.3%, as all three main sectors suffered a fall in output for the first time since January 2021, according to official figures. 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% in March.
April’s data showed output contracted by 0.3% in the main services sector, largely due to the ending of the Government’s Covid-19 Test and Trace programme and lower vaccination activity. With the Test and Trace and vaccines impact stripped out, GDP would have risen by 0.1% in April, the ONS said.
But there were also declines in the manufacturing and construction sectors, down 1% and 0.4% in April respectively, with manufacturers in particular noting the impact of soaring prices and supply chain woes. Darren Morgan, director of economic statistics at the ONS, said: “A big drop in the health sector due to the winding down of the test and trace scheme pushed the UK economy into negative territory in April.
