UK Economy Shrank in April as Iran War Started to Take Toll

Economists polled by Reuters had been expecting the British economy to contract by 0.1% month-on-month.

Production output contracted by 0.1%, following a growth of 0.2% in the three months to March 2026.

The decline was driven by a 0.2 per cent fall in services, which was partially offset by a 0.1 per cent rise in construction and 0.4 per cent growth in manufacturing.

A slight contraction for April had been predicted by analysts, after the economy saw stronger than expected growth in March as people brought forward spending due to concerns about the war in the Middle East.