Barret Kupelian, senior economist at PwC, says,
“This morning’s release from the ONS showed UK GDP contracted by 0.3% month on month in April this year, for a second consecutive month. The slowdown was widespread across all three sectors of the UK economy: production, services and construction.
“UK economic output has now reverted to levels last seen in November 2021 and is around 0.9% higher than pre-pandemic levels, compared to 1.3% higher earlier this year. For businesses this means the economic environment is even more challenging as they will have to fight over a smaller pie to grow their revenues.
“The economic data is now rapidly catching up with the cocktail of challenges businesses and consumers are facing, namely the war in Ukraine, high food and energy inflation and potential for further supply chain disruptions over trade tensions with the EU.
“We continue to expect the UK economy to grow by an average of 2-3% this year. However, this projection is artificially inflated by the poor performance of the economy in the beginning of last year. For most people the economic outlook will feel stagnant in the coming few months.”
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