The decrease follows the surprise expansion of 0.3% in March and the rise of 0.5% in February, which was revised down from a rise of 0.6%.
The ONS found that services fell by 0.2%, which the overall drop was attributed to. It noted that the decrease in services was partially offset by a 0.1% rise in construction. Meanwhile, production showed no movement.
On a quarterly basis, real gross domestic product (GDP) expanded by 0.7%, following rises of 0.6% and 0.5% in the three months to March and February respectively.
Pressure on economy will likely continue
The Bank of England’s Monetary Policy Committee (MPC) is due to make its next interest rate decision next week, and this latest data – coupled with higher-than-desirable inflation – means another base rate hold will likely be on the cards, according to Kevin Brown, savings expert at Scottish Friendly, who said: “While GDP fell on a monthly basis in April for the first time since the end of last summer, the quarterly picture tells a more encouraging story.
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“The economy actually grew 0.7% in the three months to April, driven by a resilient services sector and a construction industry that has now strung together consecutive months of growth following a period of contraction.
“Despite this, the economy is facing considerable headwinds, the most serious of which is the conflict in the Middle East, which is acting as a chokepoint in the global economy that is pushing up energy prices, disrupting supply chains and spooking policymakers.”
Brown continued: “Yesterday, the European Central Bank became the first G7 central bank to raise rates in response, citing inflationary pressures stemming from the Middle East conflict. That decision will not have gone unnoticed on Threadneedle Street.
“Even so, we expect the Bank of England’s Monetary Policy Committee to hold rates when it meets next week. UK inflation remains above the 2% target but has not spiralled because of the conflict, while the economy is holding up relatively well, all things considered. Increasing rates would act as an anchor on the economy and a fragile labour market.”
