UK gross domestic product (GDP) fell by 0.3% in April 2025, the latest figures from the Office for National Statistics show, following growth of 0.2% in March. The decline was driven by a 0.4% fall in the services sector, its first contraction since October 2024. GDP is estimated to have grown by 0.7% in the three months to April, supported by previous momentum in services and strong contributions from the production and construction sectors.
Within services, the largest downward pressure came from professional, scientific and technical activities, where output declined by 2.4%. Legal activities saw a sharp 10.2% drop, which the ONS linked to a pull-forward in transactions ahead of stamp duty land tax (SDLT) increases in April. Real estate activity on a fee or contract basis also fell by 6.5%, with conveyancers and estate agencies reporting a marked slowdown.
The wholesale and retail trade; repair of motor vehicles and motorcycles subsector declined by 1.2%, driven by a 3.2% fall in wholesale trade and a 3.1% fall in motor trade services. These falls were only partially offset by a 1.2% increase in retail trade, except of motor vehicles and motorcycles.
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 dropped by £2bn in April, with feedback from businesses also highlighting wider pressures including higher National Insurance contributions and expectations of further cost increases due to tariffs. Despite the monthly fall, GDP in April 2025 was 0.9% higher than in the same month last year.
