UK
GDP
was
flat
in
April,
according
to
data
from
the
Office
for
National
Statistics,
showing
a
0%
month-on-month
change.
Along
with
this
yesterday’s
unemployment
numbers
and
May
inflation,
GDP
is
a
key
data
point
taken
into
account
by
the
Bank
of
England,
which
meets
next
week.
The
data
shows
that
the
UK
economy,
having
recently
exited
recession,
is
still
struggling
to
grow,
a
concern
for
both
major
parties
as
the
UK
heads
to
the
polls.
The
UK
economy
is
just
0.6%
higher
than
at
April
2023,
and
the
IMF
is
predicting
0.7%
growth
in
GDP
for
the
whole
year,
before
rising
to
1.5%
in
2025.
Michael
Field,
European
market
strategist
at
Morningstar,
says
that
April
was
a
poor
month
for
the
UK,
especially
for
the
manufacturing,
industrial
production,
and
construction
sectors.
Poor
weather
was
also
a
factor.
But
the
data
could
prompt
the
Bank
to
act
on
interest
rates,
he
adds:
“Weak
economic
readings
such
as
these
are
never
a
cause
for
cheer.
However,
with
the
Bank
of
England
poised
to
decide
on
when
to
cut
interest
rates,
data
points
like
todays
might
actually
prove
to
be
a
positive
catalyst,
removing
any
concern
the
Bank
might
have
of
a
potentially
heating
economy,
and
paving
the
way
for
a
sooner
than
expected
rate
cut.”
Looking
Ahead
to
Next
Week’s
Rate
Decision
Neil
Birrell,
chief
investment
officer
at
Premier
Miton
Investors
and
lead
manager
of
the
Premier
Miton
Diversified
Fund
range,
also
suggests
that
there
is
some
argument
for
a
rate
cut
to
boost
the
ailing
UK
economy:
“No
one
set
of
numbers
will
drive
the
Bank
of
England’s
interest
rate
decision,
but
they
will
now
be
looking
to
inject
some
stimulus
as
soon
as
they
feel
it
is
safe
to
do
so.”
Yesterday’s
unemployment
and
wage
data
showed
wages
in
the
service
sector
still
buoyant,
a
concern
for
the
Bank
of
England.
One
June
19
the
ONS
also
releases
May
inflation
data,
a
day
ahead
of
the
Bank’s
latest
rate-setting
decision.
In
April,
UK
inflation
fell
to
2.3%,
close
to
the
2%
target,
but
the
Bank
has
warned
that
inflation
could
rise
again
before
falling
back.
The
European
Central
Bank
cut
interest
rates
last
week
for
the
first
time
in
five
years,
but
its
inflation
outlook
changed
market
expectations
of
the
sequence
of
rate
cuts
this
year.
And
the
Federal
Reserve
is
due
to
make
an
interest
rate
decision
tonight,
but
is
unlikely
to
change
interest
rates.
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