Published • loading... • Updated
UK economy shrank by 0.1% in April as Iran war held back growth
The Office for National Statistics said services were hit hardest, while the economy still grew 0.7% in the three months to April.
- The ONS reported the economy contracted by 0.1% in April, marking the first monthly decline since August after a period of stronger growth.
- Some of this fall stems from the Middle East conflict, with the effective closure of the Strait of Hormuz pushing up crude prices and reducing turnover for various industries.
- While the economy grew by 0.7% over the three months to April, arts, entertainment, and sports Area were particularly hard hit, contributing to the contraction.
- Chancellor of the Exchequer Rachel Reeves acknowledged the war "will have an impact at home," while Analysts expect The Bank to keep interest rates unchanged when it meets next week.
- Yael Selfin, chief economist at KPMG, warned that this contraction "points to renewed fragility in the UK economy," as Consumers brace for higher energy bills amid subdued domestic demand.
Insights by Ground AI
Podcasts & Opinions
54 Articles
54 Articles
UK Economy Shrank Slightly in April as Services Weakened: ONS
The UK’s economy contracted slightly in April after months of growth, as activity in the services sector weakened, while businesses reported higher costs and disruptions linked to the conflict in the Middle East. The Office for National Statistics (ONS) said on June 12 that gross domestic product (GDP) fell 0.1 percent in April, marking the first monthly fall since August 2025. The decline followed growth of 0.3 percent in March and 0.4 percent …
·New York, United States
Read Full Article
The drop in production followed a robust start to the year, in which British growth surpassed that of the US.
·Brazil
Read Full Article
The IndependentReposted by 
The Independent (US)
The Independent (US)UK economy shrinks following impact of Iran war
Rachel Reeves acknowledged that the war in the Middle East was hitting the economy
·London, United Kingdom
Read Full ArticleCoverage Details
Total News Sources54
Leaning Left9Leaning Right8Center12Last UpdatedBias Distribution41% Center
Bias Distribution
- 41% of the sources are Center
41% Center
L 31%
C 41%
R 28%
Factuality
To view factuality data please Upgrade to Premium
