LONDON, June 12 (Xinhua) -- Britain's real gross domestic product (GDP) dropped by 0.1 percent in April over the previous month, marking the first monthly fall since August 2025, according to the Office for National Statistics (ONS) on Friday.
The decline followed growth of 0.3 percent in March and 0.4 percent in February, ONS data showed.
The fall was driven by a 0.2-percent contraction in the services sector, which was partially offset by a 0.1-percent increase in construction output, while production output remained unchanged, the ONS said.
"April's decline in GDP shows the impact of developments in the Middle East spreading across the economy," said Anna Leach, chief economist at the Institute of Directors. She noted that manufacturers, wholesalers, and businesses in the transport, accommodation and travel sectors are reporting lower turnover as a result of the conflict, while crude oil input prices have risen by 75 percent year-on-year.
"For businesses, sharply rising fuel, transport and input costs, slowing decision-making and declining confidence are combining with a turbulent and costly domestic policy environment, creating strong headwinds to growth," she added. Leach called for the removal of barriers to growth arising from taxation and regulation, as well as the establishment of a predictable policy environment.
Stuart Morrison, research manager at the British Chambers of Commerce (BCC), said the April decline is a signal that will need to be closely monitored, as businesses have already reported to the BCC the direct impacts they are facing from the conflict.
The BCC has already downgraded its economic growth forecast for 2026 to 0.9 percent. ■