STORY
The UK economy contracted by 0.1% in April, according to figures reported by the Office for National Statistics. Reuters reported that it was the first monthly fall since August and that the services sector was affected by disruption linked to the war involving Iran.
The data showed services output fell by 0.2% during the month. Reuters reported that cancellations of sporting events in the Gulf, including Formula 1 Grand Prix races, affected British firms connected to the entertainment and support services sectors.
Rachel Reeves said the war in Iran would have an impact on the economy but said the Government’s economic plan remained the right one. Manufacturing output rose by 0.4% in April, while construction also recorded modest growth.