U.K. GDP slips 0.1% in April as services output falls, ONS says

According to CNBC, the U.K. economy contracted 0.1% in the month to April, matching the 0.1% decline expected by economists polled by Reuters, after growth of 0.3% in March, 0.4% in February and flat output in January. The Office for National Statistics said a 0.2% drop in services was the main drag, partly offset by a 0.1% rise in construction, while production was unchanged; it also cited a 9.1% fall in sports, amusement and recreation as the largest negative contribution from a single industry, with some weakness linked to cancellations of sporting events in the Middle East. The ONS said some businesses reported reduced turnover and higher prices tied to the conflict, particularly for energy and fuel, and suggested the impact could extend into future months. Suren Thiru, chief economist at the Institute of Chartered Accountants in England and Wales, said the data made a Bank of England rate cut next week less likely and warned the GDP decline pointed to a move toward stagflation. The International Monetary Fund forecast U.K. growth of 0.8% in 2026, down from 1.3% earlier in the year, while U.K. headline inflation eased to 2.8% in April; Britain’s energy regulator is set to raise the national energy price cap by 13% from July.