UK private sector shrinks as export orders slump; state borrowing nearly £15bn above official forecast – as it happened
Gloomy business surveys for UK, Europe and US show tariffs starting to take their toll but stocks, dollar rally on hopes of US-China trade deal
The collapse in confidence and drop in output during April raise red flags for the economic outlook and add pressure on the Bank of England to reduce interest rates again at its May meeting, said Chris Williamson, chief business economist at S&P Global Market Intelligence.
While recent months have been characterised by UK businesses treading water, broadly stagnating since last autumn’s budget, businesses are reporting more of a struggle to keep their heads above water in April.
April’s fall in output was the largest recorded for nearly two and a half years, consistent with GDP declining at a quarterly rate of 0.3%, reflecting falling activity and demand across both manufacturing and services.