Story perspectives

UK GDP Falls 0.1% in April, Services Slump

6/13/2026

Summary

UK GDP Contracts

UK GDP contracted 0.1 percent in April 2024 after month-on-month growth in February and March.
Services output fell 0.2 percent, driven by a 9.1 percent slump in sports, amusement and recreation linked to event cancellations amid the Iran war.
Construction rose 0.1 percent and manufacturing 0.4 percent in April, partially offsetting the services loss.
GDP rose 0.7 percent over the three months to April, prompting the ONS director to say the economy grew despite the dip.

Summary

BoE Holds Rates

The Bank of England is expected to keep its policy rate at 3.75 percent at the 18 June meeting because higher energy costs could reignite inflation.
The pound recovered most of its earlier losses, with GBP / USD climbing toward 1.3410 after the GDP release.
Official retail sales fell 1.3 percent month-on-month, the sharpest decline in nearly a year, highlighting the impact of rising fuel prices on consumer spending.

Summary

**UK businesses brace**

Fuel imports rose to £7.1 billion in April, highest in three years after Strait of Hormuz closure.
Ruth Fleet said 43 % of firms expect energy costs to rise 20-100 % this year.
The Office for National Statistics reported 40 % of businesses saw price increases in April, the strongest since December 2022.
Ben Jones urged a business-led plan to cut energy bills and boost infrastructure, while Thomas Pugh warned higher energy prices could stall growth.

Summary

UK economy slows

Early-war stockpiling by businesses and households that had lifted activity is now receding, reducing the temporary boost to the economy.
Policymakers warn that damage to key energy infrastructure from the Iran conflict could produce lasting economic effects even if hostilities end quickly.
Administrative and support activities contracted 2.2 percent in April, a decline linked to weak demand for labour.

History

Historical Context

In October 1973 OPEC’s Arab oil embargo caused world oil prices to quadruple, hitting a Britain still reliant on imported oil because North Sea fields wouldn’t produce until 1975. Prime Minister Edward Heath warned of recession, turned to coal, and faced a miners’ strike that helped topple his government in the February 1974 election. The shock still shapes today’s push for diversified energy and business-led cost mitigation.

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UK GDP Contracts

UK GDP contracted 0.1 percent in April 2024 after month-on-month growth in February and March.
Services output fell 0.2 percent, driven by a 9.1 percent slump in sports, amusement and recreation linked to event cancellations amid the Iran war.
Construction rose 0.1 percent and manufacturing 0.4 percent in April, partially offsetting the services loss.
GDP rose 0.7 percent over the three months to April, prompting the ONS director to say the economy grew despite the dip.

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