The UK economy shrank by 0.3% in April 2025, driven by declines in services and manufacturing, according to new figures from the Office for National Statistics. Services output dropped by 0.4% and production fell by 0.6%, while construction rose by 0.9%. Over the three months to April, GDP grew by 0.7%, reflecting earlier gains.
Vehicle-related activity was among the hardest hit. The manufacture of motor vehicles, trailers and semi-trailers fell by 9.5% in April, with the Society of Motor Manufacturers and Traders (SMMT) citing model changeovers and weaker export demand as key reasons. Wholesale trade, excluding motor vehicles, also declined by 3.2%, with motor trade services down 3.1%.
Liz McKeown, director of economic statistics at the ONS, said: “After increasing for each of the four preceding months, April saw the largest monthly fall on record in goods exports to the United States with decreases seen across most types of goods, following the recent introduction of tariffs.”
Export activity to the US fell by £2bn in April, contributing to the wider slowdown in sectors tied to logistics, van sales, and supply chains.
Retail trade outside the motor sector rose by 1.2%, offering some support to the services sector. GDP in April 2025 remained 0.9% higher than in the same month the previous year.
