UK Economy Seen Shrinking 0.1% in April as Fuel Price Shock Hits Spending
Updated
Updated · The Independent · Jun 7
UK Economy Seen Shrinking 0.1% in April as Fuel Price Shock Hits Spending
3 articles · Updated · The Independent · Jun 7
Summary
April GDP is expected to slip 0.1% from March, with some forecasters predicting a 0.2% drop as higher petrol and diesel prices start squeezing households and businesses.
Retail sales already signaled the slowdown: April volumes fell 1.3%, while motor fuel sales plunged 10.2% — the steepest drop since November 2020.
March had looked far stronger, with GDP up 0.3% on the month and first-quarter growth at 0.6%, but economists say some demand was pulled forward before energy costs rose further.
Services weakness is now expected to drag on second-quarter activity, with analysts warning the Iran-linked energy shock and rising domestic political uncertainty could keep growth subdued through the summer.