UK economy shrinks 0.1% in April as Iran war hits services

LONDON — Britain's economy contracted by 0.1% in April, the first monthly decline since August 2025, according to data released on Friday by the Office for National Statistics. The figures mark the clearest indication so far of the impact of the US-Israeli war against Iran on the UK economy. Services output fell 0.2% during the month, dragged down by weakness in administrative and support services and in arts and entertainment. An ONS official said the cancellation of sporting events in the Middle East had hurt British companies, noting that Formula 1 races in Bahrain and Saudi Arabia, along with tennis and football fixtures scheduled for April, were called off after the war began. Chancellor of the Exchequer Rachel Reeves said the Iran conflict would affect the economy but that the government's plans remained on the right track. Manufacturing output rose 0.4%, supported by an increase in pharmaceutical production. Trade data showed UK fuel imports climbed to £7.1 billion in April, the highest level in three years. No further details on the economic impact were immediately available.