FTSE 100 LIVE: Stocks slump as UK GDP contracts 0.3% in April
The FTSE 100 ( ^FTSE ) and European stocks were lower on Thursday as the UK economy shrank more than expected in April , in a blow to chancellor Rachel Reeves who is seeking growth to power her spending plans.
According to the Office for National Statistics (ONS) gross domestic product (GDP) contracted by 0.3% during the month, worse than analysts’ fears that the economy would shrink by 0.1%.
It follows a 0.7% expansion during the first three months of the year.
The ONS said services output fell by 0.4%, after growth of 0.4% in March, and was the largest contributor to the fall in GDP in the month. Production output also decreased, by 0.6%, but construction output rose by 0.9% in April.
It comes as April began with US president Donald Trump announcing a slew of tariffs on US trading partners and was also the month when UK employers started paying higher national insurance contributions.
Reeves has made growing the British economy one of her main missions as she aims to shore up public finances.
On Thursday she said: "Our number one mission is delivering growth to put more money in people’s pockets through our Plan for Change, and while these numbers are clearly disappointing, I’m determined to deliver on that mission.
“In yesterday’s spending review we set out how we’ll deliver jobs and growth — whether that’s improving city region transport, a record investment in affordable homes or funding Sizewell C nuclear power station. We’re investing in Britain’s renewal to make working people better off.”
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