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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.
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Coverage Details
Total News Sources14
Leaning Left3Leaning Right1Center8Last UpdatedBias Distribution67% Center
Bias Distribution
- 67% of the sources are Center
67% Center
L 25%
C 67%
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