UK Economy Shrank Slightly in April as Middle East Conflict Added to Price Pressures: ONS

‘Before the conflict in the Middle East, growth was higher than expected and inflation was falling,’ UK Chancellor of the Exchequer Rachel Reeves said.

A pedestrian shelters from the rain beneath an umbrella at the Houses of Parliament in central London on Jan. 15, 2026. Justin Tallis/AFP via Getty Images

The UK’s economy contracted slightly in April after months of growth, as activity in the services sector weakened, while businesses reported higher costs and disruptions linked to the conflict in the Middle East.

The Office for National Statistics (ONS) said on June 12 that gross domestic product (GDP) fell 0.1 percent in April, marking the first monthly fall since August 2025.