UK economy tipped to stall as Iran war chokes growth

Rachel Reeves braces for 'bad news' as US-Iran war to hit UK economy's GDP growth

Chancellor Rachel Reeves is expected to be dealt another fiscal blow as the British economy appears set to experience another month of stagnation.The Office for National Statistics (ONS) will release gross domestic product (GDP) data for May on Thursday, with forecasters anticipating either flat growth or a further 0.1 per cent contraction.April saw output shrink by 0.1 per cent, representing the first decline since August 2025 and a marked slow…

UK economy tipped to stall as Iran war chokes growth

The UK’s economy is expected to stall another month as the Iran war continues to choke growth and some industries face slowing output. Gross domestic product (GDP) is expected to have slipped again by 0.1 per cent in May, according to some economists. The UK’s growth update, delivered by the Office for National Statistics (ONS) on Thursday, is expected to reveal the ongoing effect of the global turbulence caused by the US and Israel’s war with I…

UK economy set to have stayed in slow lane after Iran war held back growth

Some economists are expecting GDP to have flatlined or declined in May, after slipping by 0.1% in April.

Small firms freeze hiring as Iran war drags growth to five-year low

Britain’s businesses have stopped hiring and slipped into “survival mode”, with economic output stuttering to a five-year low in June as the Iran war, weak consumer spending and relentless cost increases combine to squeeze firms from every direction. The warning comes from consultancy BDO, whose index of economic output slid to 91.53 in June from 94.80 the previous month. That is its weakest reading since February 2021, when the UK was still in …

UK economy set to stagnate as Iran war and high energy costs hold back growth

For free real time breaking news alerts sent straight to your inbox sign up to our breaking news emailsSign up to our free breaking news emailsSign up to our free breaking news emailsThe UK economy is expected to have remained stagnant for another month, with industries under pressure and geopolitical tensions hindering growth. The Office