The UK economy failed to grow in April after particularly wet weather put off shoppers and slowed down construction. The official data is what most economists had expected and comes after the fastest growth in two years from January to March, ending the recession from the final half of last year.
The economy is a key battleground in the run-up to the general election on 4 July, with the main parties debating whether the latest numbers point to a continued recovery or stagnation.
The Conservatives argue they show the economy has “turned a corner”, while Labour say they “expose the damage done”.
The Office for National Statistics (ONS) figures show spending on services, which includes everything from hairdressers to hospitality, grew for the fourth month in a row. However, this was off-set by falls in production and in the construction industry.
The BBC is reporting that the UK’s gross domestic product (GDP), which measures the value of goods and services produced in a country over time, had grown 0.4% in March.
Some parts of the services industry performed better than others. The information, communication, and scientific sector grew the most, while shop trade fell.
The ONS said some retail businesses told them their output was dented because of the wetter weather, with rainfall for the month well above the long-term average. However, it added that it was “difficult to quantify the exact impact” of the rainfall.
Output in services for consumers, many of whom are still struggling to cope with the steep rises in the cost of living, fell by 0.7%.
Economists do also warn against placing too much weight on shifts in economic activity over one month because they can be affected by factors like the weather or the timing of the Easter holidays.
Over the three months to April, the economy grew, up by 0.7% from February to April.
The Bank of England will look at the figures alongside a range of others next Thursday when it meets to decide what to do about the interest rate.
Most economists do not believe Wednesday’s update will sway the decision much though, as it was broadly in line with expectations.
Many people are struggling not only with higher energy and food bills, but with higher mortgage payments as interest rates have gone up, which the central bank has increased in a bid to tackle price rises.