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UK economy shrinks 0.1% in April despite stronger 3-month growth: ONS

UK economy shrinks 0.1% in April despite stronger 3-month growth: ONS



UK economy shrinks 0.1% in April despite stronger 3-month growth: ONS

The UK economy contracted by 0.1 per cent in April 2026 after expanding by 0.3 per cent in March and 0.4 per cent in February, according to the Office for National Statistics (ONS). The decline was driven by a 0.2 per cent fall in services output and production remained flat.

Despite the monthly setback, the broader trend remained positive. Real gross domestic product (GDP) grew by 0.7 per cent in the three months to April compared with the three months to January, marking the fifth consecutive period of three-month growth, the ONS said in a press release.

The UK economy contracted by 0.1 per cent in April 2026 as services output fell 0.2 per cent and production remained flat.
However, GDP grew 0.7 per cent in the three months to April, marking a fifth consecutive period of expansion.
Businesses reported higher costs linked to the Middle East conflict, while May indicators pointed to mixed economic conditions.

Production output was unchanged in April, as it declined by 0.1 per cent in the three months to April. Manufacturing rose 0.4 per cent, supported by pharmaceutical production, basic metals, and rubber and plastics products, but gains were offset by declines in electricity and gas supply and water-related activities.

The ONS noted that businesses across manufacturing, wholesale trade, transport, accommodation and travel reported pressures linked to the Middle East conflict, including higher energy and fuel costs.

Looking ahead, real-time indicators for May suggested mixed conditions, with stronger retail footfall and housing activity but signs of labour market weakening and lower ship visits to major UK ports.

Fibre2Fashion News Desk (SG)



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