A Reuters poll of economists had forecast that Britain’s gross domestic product would fall by 0.1% in April compared with March’s level.

Britain’s economy expanded by 0.7% in the first quarter of 2025, outstripping growth in other countries in the Group of Seven advanced economies and prompting the Bank of England (BoE) to revise up its full-year growth forecast to 1% last month.

However, the BoE revised down its growth forecast for 2026 to 1.25% and said it expected the tariffs to knock 0.3% off British output in three years’ time.

BoE policymakers who are expected to hold interest rates next week are faced with competing forces of stubborn inflation and a relatively sluggish economy.

A closely-watched business survey earlier this month suggested much of the economy returned to tepid growth.

Business surveys of British firms have generally been downbeat and shown firms slowed their hiring and investment plans due to big increases in labour costs announced by finance minister Rachel Reeves last October.

Data published this week showed a fall in consumer spending in May.