UK economy flatlined in April in a blow to the governing Conservatives ahead of the July 4 election
UK economy flatlined in April in a blow to the governing Conservatives ahead of the July 4 election
FILE - Britain’s Prime Minister and Conservative Party leader Rishi Sunak speaks with students during a visit of University Technical College (UTC) in Silverstone, England, Tuesday June 11, 2024, in the build-up to the UK general election. Even in a busy year of elections, the next few days stand out. Voters go to the polls over the next week in fledgling democracies like Mauritania and Mongolia, in the Islamic Republic of Iran and in the stalwart democracies of Britain and France. (Benjamin Cremel, Pool Photo via AP, File)
Britain’s Prime Minister and Conservative Party leader Rishi Sunak reacts during a visit of University Technical College (UTC) in Silverstone, England, on Tuesday June 11, 2024, in the build-up to the UK general election on July 4. (Benjamin Cremel, Pool Photo via AP)
Britain’s Prime Minister and Conservative Party leader Rishi Sunak reacts during a visit of University Technical College (UTC) in Silverstone, England, on Tuesday June 11, 2024, in the build-up to the UK general election on July 4. (Benjamin Cremel, Pool Photo via AP)
Labour Party leader Keir Starmer passes a toothbrush to a child during his visits to the Whale Hill Primary School as the Labour Party announces plans to tackle the crisis in children’s dentistry and clear the backlog with 100,000 extra appointments for kids, whilst on the General Election campaign trail, in Eston, Middlesbrough, England, Tuesday, June 11, 2024. (Stefan Rousseau/PA via AP)
Labour Party leader Keir Starmer holds a toothbrush during his visit to Whale Hill Primary School whilst on the General Election campaign trail, in Eston, Middlesbrough, England, Tuesday, June 11, 2024. (Stefan Rousseau/PA via AP)
FILE - Britain’s Prime Minister and Conservative Party leader Rishi Sunak speaks with students during a visit of University Technical College (UTC) in Silverstone, England, Tuesday June 11, 2024, in the build-up to the UK general election. Even in a busy year of elections, the next few days stand out. Voters go to the polls over the next week in fledgling democracies like Mauritania and Mongolia, in the Islamic Republic of Iran and in the stalwart democracies of Britain and France. (Benjamin Cremel, Pool Photo via AP, File)
FILE - Britain’s Prime Minister and Conservative Party leader Rishi Sunak speaks with students during a visit of University Technical College (UTC) in Silverstone, England, Tuesday June 11, 2024, in the build-up to the UK general election. Even in a busy year of elections, the next few days stand out. Voters go to the polls over the next week in fledgling democracies like Mauritania and Mongolia, in the Islamic Republic of Iran and in the stalwart democracies of Britain and France. (Benjamin Cremel, Pool Photo via AP, File)
Britain’s Prime Minister and Conservative Party leader Rishi Sunak reacts during a visit of University Technical College (UTC) in Silverstone, England, on Tuesday June 11, 2024, in the build-up to the UK general election on July 4. (Benjamin Cremel, Pool Photo via AP)
Britain’s Prime Minister and Conservative Party leader Rishi Sunak reacts during a visit of University Technical College (UTC) in Silverstone, England, on Tuesday June 11, 2024, in the build-up to the UK general election on July 4. (Benjamin Cremel, Pool Photo via AP)
Britain’s Prime Minister and Conservative Party leader Rishi Sunak reacts during a visit of University Technical College (UTC) in Silverstone, England, on Tuesday June 11, 2024, in the build-up to the UK general election on July 4. (Benjamin Cremel, Pool Photo via AP)
Britain’s Prime Minister and Conservative Party leader Rishi Sunak reacts during a visit of University Technical College (UTC) in Silverstone, England, on Tuesday June 11, 2024, in the build-up to the UK general election on July 4. (Benjamin Cremel, Pool Photo via AP)
Labour Party leader Keir Starmer passes a toothbrush to a child during his visits to the Whale Hill Primary School as the Labour Party announces plans to tackle the crisis in children’s dentistry and clear the backlog with 100,000 extra appointments for kids, whilst on the General Election campaign trail, in Eston, Middlesbrough, England, Tuesday, June 11, 2024. (Stefan Rousseau/PA via AP)
Labour Party leader Keir Starmer passes a toothbrush to a child during his visits to the Whale Hill Primary School as the Labour Party announces plans to tackle the crisis in children’s dentistry and clear the backlog with 100,000 extra appointments for kids, whilst on the General Election campaign trail, in Eston, Middlesbrough, England, Tuesday, June 11, 2024. (Stefan Rousseau/PA via AP)
Labour Party leader Keir Starmer holds a toothbrush during his visit to Whale Hill Primary School whilst on the General Election campaign trail, in Eston, Middlesbrough, England, Tuesday, June 11, 2024. (Stefan Rousseau/PA via AP)
Labour Party leader Keir Starmer holds a toothbrush during his visit to Whale Hill Primary School whilst on the General Election campaign trail, in Eston, Middlesbrough, England, Tuesday, June 11, 2024. (Stefan Rousseau/PA via AP)
LONDON (AP) — The British economy failed to grow in April, official figures showed Wednesday, in a blow to Prime Minister Rishi Sunak who has made the return of growth and a generally calmer economic backdrop a central pillar of the Conservative Party’s election campaign.
The Office for National Statistics said wet weather dampened consumer spending and construction during the month. The flat monthly reading came after a 0.6% increase during the first quarter of the year, which Sunak has made much of on the campaign trail following a period of muted growth.
Though monthly figures are vulnerable to short-term factors, the flat reading is likely to be used by opponents of the Conservatives in the run-up to the election on July 4.
While Treasury chief Jeremy Hunt insisted the “economy is turning a corner,” his opposite number in the Labour Party Rachel Reeves said the “economy has stalled.”
The latest growth figures come a week before the next round of inflation data and the Bank of England makes its next interest rate decision.
Hopes within the Conservative Party that the bank would lower its main interest rate from the 16-year high of 5.25% have diminished after inflation failed to fall as much as hoped in April. Though inflation is down at an annual rate of 2.3%, it remains slightly above the bank’s target and is expected to tick up slightly in coming months.
High interest rates — which cool the economy by making it more expensive to borrow — have helped ease inflation, but they’ve also weighed on the British economy.
“A June interest rate cut looks improbable, with the Bank of England likely to be a little wary of shifting policy in the middle of a general election campaign,” said Suren Thiru, economics director at the Institute of Chartered Accountants in England and Wales.
On Tuesday, Sunak pledged to cut taxes and reduce immigration in the Conservative Party’s manifesto for government if reelected. Labour, which is ahead in opinion polls, is due to publish its manifesto on Thursday.