Services sector decline drove the contraction, offset partially by modest construction growth, official data showed.
The UK economy contracted by 0.1% in April, marking a slowdown attributed to the ongoing Iran conflict. The decline was primarily driven by a 0.2% drop in services activity, while construction output rose 0.1% and production remained flat.
April’s contraction follows mixed economic performance in prior months, with growth stalling amid geopolitical tensions. Analysts had anticipated a modest expansion, but the conflict’s impact on trade and sentiment weighed on activity.
Markets are monitoring the data for signs of sustained weakness, with potential implications for monetary policy and investor confidence.