Official figures released yesterday show there was zero growth in April — down from 0.4 per cent in March.
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And retail sales fell by 2.3 per cent in April — much steeper than the 0.2 per cent in March — as poor weather dampened people’s enthusiasm for shopping.
The Office for National Statistics said that clothing retailers, games, toy stores and furniture shops all had a torrid month.
Retail values also slipped despite inflation meaning that goods for sale are more expensive than a year ago.
The gloomy figures come after the Met Office described April as “a dull and wet month, receiving 155 per cent of average rainfall”.
But the news hasn’t appeared to dampen spirits.
Not a single economist downgraded their outlook for the rest of the year.
And many have pointed out that the more reliable three-month picture is positive.
The economy grew by 0.7 per cent in the three months to April.
David Bharier, head of research at the British Chambers of Commerce, said: “While there was no growth in April, it’s important to focus on the broader trend, rather than volatile monthly movements.”
A bright spot in the figures was a 2.3 per cent rise in the sports and entertainment sector, which was boosted by spending during the Grand National.
Business groups the CBI and British Chambers of Commerce, along with doomsayers at the Bank of England and International Monetary Fund, have all upgraded their forecasts for the UK economy in recent weeks — despite June’s high rainfall and low temperatures.
Julian Jessop, Economics Fellow at the Institute of Economic Affairs, said: “The headline figure of zero growth in the UK economy in April is not as bad as it sounds.
“Activity in the services sector was still expanding at a decent pace, offset by what should be temporary falls in production and in the construction industry.
“The latter was hit especially hard by the wet weather.”
The economy is also in a stronger position than last year and experts at Pantheon Macroeconomics forecast the UK should have returned to growth in May.
HOUTHIS HIT SOFAS
SOFA giant DFS has halved its profit expectations for the year due to shipping delays caused by Houthi rebels.
The retailer, which owns the Sofology brand marketed by actress Helena Bonham Carter, has cut its profit forecasts to between £10million and £12million.
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It said this was due to £12million to £14million of sofa orders being delayed because of “Red Sea disruptions”.
DFS’s sofas are made in Asian factories and it is also having to pay higher shipping costs because container vessels must sail around Africa to avoid attacks.
Shipping giant Maersk said last month it expected disruption to last all this year.
BT MEX ITS MARK
LATIN America’s richest man swooped in on a huge BT stake just months after turnaround plans were unveiled.
BT yesterday confirmed that Mexican tycoon Carlos Slim — who has been keen on European telecoms in the past — picked up a 3 per cent stake, worth nearly £400million.
It comes a month after BT shares rose 17 per cent after boss Alison Kirkby unveiled cost-cutting plans to investors.
Analyst Paolo Pescatore said it “underlines confidence in BT’s strategy and growth plans” under Ms Kirkby.
L&G TO SELL CALA
THE new boss of Legal and General has unveiled changes which could mean it sells CALA, its house builders.
Antonio Simoes said he wanted to create a “simpler better connected L&G”.
He plans to beef up L&G’s purchases of pension schemes, as with a £4.7billion buy-in with Boots recently.
A sale of Cala could raise £1billion and has attracted housebuilder Persimmon.
Despite a £200million share buyback stock in L&G fell more than five per cent yesterday.
PELTZ TO PRESSURE RENTOKIL
VETERAN activist investor Nelson Peltz might prove himself a pest to Rentokil’s board after disclosing a stake in the London-listed business.
Shares in the pest control firm soared by more than 14 per cent, valuing the company at almost £12billion as investors looked forward to some action.
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Mr Peltz, who may now be best known as father-in-law to Brooklyn Beckham after the marriage of daughter Nicola, has a long history of agitating shake-ups at big firms.
He has been a big investor in Unilever And Procter & Gamble but recently lost his battle with Disney bosses.
Analysts at CITI suggested Mr Peltz could push Rentokil to switch its London listing for a higher valuation in New York.
Rentokil now makes the bulk of its revenues in the US following its £5.2billion takeover of Terminix in 2021.
He helped force plumbers Ferguson to move in 2022.
APPLE has once again become the world’s most valuable company, overtaking Microsoft.
The iPhone maker’s shares rose more than four per cent after announcing an artificial intelligence tie-up with Open AI.
It is now valued at £2.56trillion.
ALL FULL OF FUEL?
THE world faces a major surplus of oil by 2030 amid lower demand and markets phasing out fossil fuels.
The International Energy Agency yesterday suggested there could be 8million more barrels of oil a day by the end of the decade.
Rising use of renewables and lower Chinese demand will result in an even greater glut in supply than in lockdowns.
Despite the warning, Brent crude prices rose yesterday.