UK GDP Contracts, First Decline Since August 2025

The United Kingdom’s GDP contracted by 0.1% month-on-month in April 2026, according to an announcement on Friday (12/6/2026). This marks the first contraction since August of last year, as the impact of the Middle East conflict begins to affect the economy.

According to the National Statistics Office, as reported by Trading Economics, services output fell 0.2%, with the largest negative contributors being administrative and support service activities, which dropped 2.3%, and arts, entertainment and recreation, which fell 4.3%. Wholesale and retail trade, including motor vehicle repair, also declined by 0.4%.

On the other hand, information and communication provided the largest positive contribution, rising 1.1%. Meanwhile, production output was flat following a 0.2% decline in March, as increases in manufacturing and mining were offset by decreases in utilities and water activities.

In contrast, construction grew by 0.1%. On an annual basis, GDP increased by 1.2%, the same pace as in March and slightly below the forecast of 1.3%.