UK economy contracts as Iran war impact felt

The contraction in April comes after the economy saw stronger than expected growth in March.

The UK economy contracted by 0.1% in April, influenced by rising fuel prices due to the Iran war, marking the first monthly decline since August 2025.

Official figures reveal a 0.1% contraction in the UK's GDP for April, attributed to increased fuel prices stemming from the Iran conflict.

Britain's economy contracted by 0.1% in April, the first monthly fall since August 2025, as the Middle East conflict pushed up energy costs and prompted households to reduce spending.

The UK's economy contracted by 0.1% in April, marking the first decline in eight months, as the Iran war began to affect certain sectors.

The UK economy contracted by 0.1% in April, in line with forecasts, according to data from the Office for National Statistics on Friday.

The UK's economy shrank slightly in April as the Iran war began to have an impact on businesses, official data has indicated. The economy contracted by 0.1% in the month, the Office for National Statistics (ONS) said, with some firms citing the conflict in the Middle East as having raised costs and affected turnover. April's contraction was the first monthly fall since August last year, but had been forecast by economists after stronger than expected growth in March.

The UK's economy contracted by 0.1% in April due to the impact of the war in Iran, according to data from the Office for National Statistics (ONS). The first monthly contraction since August last year was driven by a decline in output from the key services sector, said the ONS. Businesses cited the conflict in the Middle East as having raised costs and affected turnover, it added. In the three months to April, the ONS said the economy grew by 0.7% compared with the previous three-month period.

The UK economy shrank slightly, as fuel price rises caused by the Iran war hit spending, new official figures show. Gross domestic product (GDP) contracted 0.1% in April according to data from the Office for National Statistics (ONS), the first monthly fall since August. Initially, in the first month of the conflict between the US and Israel and Iran, GDP rose faster than expected, potentially impacted by companies' reaction to the Iran war-related supply disruption.

The UK economy contracted by 0.1% in April 2026, marking the first decline since August 2025, largely due to the impact of the ongoing war in Iran. The services sector, which comprises about 81% of the UK's GDP, experienced a 0.2% drop, with the arts, entertainment, and recreation subsector falling by 0.5%. Economists anticipate slower or stagnant growth due to war-related economic pressures, especially rising energy costs from the partial blockade of the Strait of Hormuz.