GDP set to show rebound accelerating

Friday’s UK gross domestic product (GDP) data for April will show whether March’s impressive rebound has continued.

GDP was estimated to have grown by 2.1% in March 2021, the fastest monthly growth since August 2020, as schools in some parts of the UK reopened throughout the month.

The service sector grew by 1.9% in March 2021, with schools re-opening across England and Wales and retail trade sales continuing to show strength, the Office for National Statistics reported.

“We look for a 2.5% month-to-month rise in GDP in April, marginally above the 2.4% consensus,” said Samuel Tombs at Pantheon Macroeconomics.

“Services output probably increased by nearly 3%, driven by rebounding retail sales and car sales as well as the partial reopening of restaurants and a further recovery in output in the education sector,” Tombs said.

On the corporate front, Naked Wines will reveal whether it has continued the momentum it revealed in its April update.

The company, which sells its wines directly to the consumer (or “direct-to-consumer” if you are not a fan of adverbs) said sales in the year to March 29 were up roughly 68% year-on-year, exceeding the upper end of guidance.

With most of the full-year sales numbers already in the public domain, the focus will be on current trading, especially in the US, which now accounts for 45% of group sales.

Significant announcements expected

Finals: Naked Wines PLC (LON:WINE), Mind Gym PLC (LON:MIND), Stenprop Ltd (LON:STP)

Economic data: UK trade balance, UK GDP

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