Key facts
- Britain's economy contracted by 0.1% in April, the first monthly fall since August 2025.
- The services sector declined by 0.2%, with sports, amusement, and recreation activities plunging by 9.1%.
- Manufacturing output rose by 0.4%, driven by pharmaceuticals and basic metals.
- Construction sector output increased by 0.1%.
- The UK economy grew by 0.7% over the three months to April.
- Higher energy costs and reduced household spending due to the Middle East conflict were cited as contributing factors.
Britain's economy contracted by 0.1% in April, marking the first monthly decline since August 2025. The downturn was attributed to increased energy costs and reduced household spending stemming from the conflict in the Middle East, impacting the services sector.
Services, the dominant sector of the British economy, fell by 0.2% on the month, with sports, amusement, and recreation activities plunging by 9.1% due to the cancellation of sporting events in the Middle East. Consumer-facing services dropped by 0.5%, with retail trade down 1.3%.
Manufacturing output rose by 0.4%, aided by pharmaceuticals and basic metals, potentially reflecting firms stockpiling amid geopolitical uncertainty. Construction sector output saw a modest increase of 0.1%. Over the three months to April, GDP expanded by 0.7%, meeting economists' expectations.
The figures highlight inflationary pressures, with 40% of trading businesses reporting rising input prices in April, the highest share since December 2022. This complicates the Bank of England's task as it balances inflation concerns with slowing economic growth.