The UK economy contracted by 0.3% in April 2025, led by declines in services and production, new data from the Office for National Statistics shows. Services output fell by 0.4% while production dropped 0.6%, with both sectors contributing to the monthly fall. In contrast, construction grew by 0.9%, offsetting the downturn slightly.
The motor trade was among the weakest performers within services. Output in wholesale and retail trade; repair of motor vehicles and motorcycles fell by 1.2% in April, driven by a 3.2% drop in wholesale trade and a 3.1% fall in the repair and retail of motor vehicles. Although retail trade outside the motor segment rose by 1.2%, it was not enough to offset the wider decline.
Manufacturing output also fell by 0.9% in April, with transport equipment registering the largest negative contribution. The manufacture of motor vehicles, trailers and semi-trailers declined by 9.5%, following growth of 7.4% in March.
The Society of Motor Manufacturers and Traders (SMMT) attributed this drop to model changeovers and softer export demand. The subsector remains 12.7% below its peak in February 2024.
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.”
Overall, GDP was still 0.9% higher in April than in the same month last year, and grew by 0.7% over the three months to April 2025. However, the data underlines ongoing volatility in sectors closely tied to consumer demand and international trade.
