Barclays: UK GDP Fell 0.1% in April, Aligning With BoE’s Second-Quarter Growth View

UK GDP contracted 0.1% month on month in April, which Barclays analysts said supported the Bank of England’s expectation of 0.1% economic growth in the second quarter. According to Jin10, Barclays analysts Jack Meaning and Sean Hennigan said in a report that the central bank was set to hold a policy meeting next week. They said the services sector weighed on growth, with sports and entertainment making a negative contribution, partly because sporting events in the Middle East may have been canceled. They added that market attention had shifted to next week’s release of May inflation data and April labor market data for any surprises. The analysts said the bar for subsequent data to change the outcome of the June meeting was high, though it could marginally affect the vote split and the tone of wording in specific parts of the statement.