IoD press release Weak April data underscores need for business-focussed growth plan
Commenting on ONS data that showed GDP fell by 0.3% in April 2025, following 0.2% growth in GDP in March, Anna Leach, Chief Economist at the Institute of Directors, said:
“This is a disappointing number and one that incorporates a decline in service sector output for the first time since October 2024. But there are signs that the expiration of the stamp duty holiday in April may be exaggerating the downside surprise in the data. The ONS note that conveyancing and real estate both cited a significant impact from the policy. Meanwhile volatility around so-called “Liberation Day” tariffs may have left a mark too.
“As we head into the second half of the year, momentum from a strong Q1 should provide a bit of a tailwind to growth. But the broader supports to growth are rocky. On the consumer side, while balance sheets are strong and interest rates have come down, rising unemployment risks causing consumers to hit pause on purchases. Businesses report widespread caution in both the UK and globally as heightened uncertainty and the passthrough from a significant rise in the cost and risk of employment play through to sluggish demand. The Spending Review represents a decent allocation of revenues across public service delivery and infrastructure investment, but we await a more comprehensive plan for delivering the UK’s economic renewal which has business at its heart.”
