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UK economy contracts 0.4% in April

UK economy contracts 0.4% in April

Britain’s economy reported a more than forecast contraction in April, yet it saw a growth over the quarter, data from the ONS showed on Monday.

U.K. GDP signaled a 0.4 percent drop, the sharpest monthly fall since March 2016, in the month of April, following a contraction of 0.1 percent in March.

In the February-April quarter, however, the economy grew by 0.3 percent.

The monthly fall was triggered by “a dramatic fall in car production, with uncertainty ahead of the UK’s original EU departure date leading to planned shutdowns,” said the ONS’s head of GDP Rob Kent-Smith.

U.K. manufacturing production plummeted a stunning 3.9 percent, the most since June 2002, as the car-making sector slipped 24 percent. 

Industrial production dropped 2.7 percent and construction output edged down 0.4 percent.  

The overall trade in goods shortfall narrowed to 12.1 billion pounds in April from a revised deficit of 15.4 billion pounds.

As of 09:10 GMT, the pound traded lower at $1.2690, retreating from last week’s two-week high of $1.2762.

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