• Prior -0.1%

That's a significant miss and reaffirms that the cost-of-living crisis in the UK is worsening, with the economy contracting in April. In the three months to April, UK GDP increased by just 0.2%.

Of note, services fell by 0.3% and was the biggest contributor to the drop in economic activity. Production fell by 0.6% in April, driven by a fall in manufacturing of 1.0%, while construction also fell by 0.4% on the month. ONS notes that this is the first time that all main sectors have contributed negatively to a monthly GDP estimate since January 2021.

As inflation pressures continue to constrict the economy, this will be a big headwind for the BOE to stay on the tightening path.