Activity in the British economy decreased in April for the second consecutive month, reflecting a decline in the services sector following the cessation of COVID-19 testing for citizens, while inflation and supply chain issues hampered the industry.
British GDP fell in April by 0.3 percent compared to March, when it decreased by 0.1 percent, the Office for National Statistics (ONS) reported on Monday.
For the first time since the beginning of last year, activity in the industry, construction, and services sectors decreased by 1, respectively 0.4 and 0.3 percent, statisticians emphasize.
The main reason for the GDP decline is the cessation of COVID-19 testing for citizens, ONS highlights, while in the industry, they point to rising prices and difficulties in the supply chain.
– A significant drop in the healthcare sector due to the cessation of testing and tracking programs pushed the British economy into negative territory in April – explains Darren Morgan, Director of Economic Statistics at ONS.
Activity in the health and social care sector fell by as much as 5.6 percent, ONS states.
– It suffered because of production as well, and some companies have told us that their business is pressured by rising fuel and energy prices. The increase in car sales, which recovered from a significantly weaker March than usual, somewhat cushioned them – added Morgan.
ONS emphasizes that in all economic sectors there are concrete indications of the impact of record fuel and energy prices on companies’ operations.
These indications lead to the conclusion that rising prices, especially for fuel and energy, affect the industry as a whole, they add.
