The British economy saw no growth in April, according to official figures released on Wednesday, which could be a major blow to Prime Minister Rishi Sunak and the Conservative Party’s election campaign. The Office for National Statistics reported that wet weather had a negative impact on consumer spending and construction activities during the month. This flat monthly reading follows a 0.6% increase in the first quarter of the year, which Sunak highlighted on the campaign trail after a period of subdued growth.
While monthly figures can be influenced by short-term factors, the lack of growth is likely to be used by opponents of the Conservatives in the lead up to the July 4 election. Treasury chief Jeremy Hunt remains optimistic, saying that the “economy is turning a corner,” but his Labour Party counterpart, Rachel Reeves, expressed concern that the “economy has stalled.”
The latest growth figures come just before the next round of inflation data is released and the Bank of England announces its next interest rate decision. Expectations for the bank to lower its main interest rate from the 16-year high of 5.25% have decreased after inflation did not fall as much as anticipated in April. Although inflation has dropped to an annual rate of 2.3%, it remains slightly above the bank’s target and is expected to increase slightly in
