UK economy contracts by 0.1% in April as Iran war weighs

The UK economy contracted 0.1% in April, in line with forecasts, according to data from the Office for National Statistics on Friday.

Monthly gross domestic product contracted by 0.1% in April, following growth of 0.3% in March and 0.4% in February. This was in line with the FXStreet-cited consensus.

This fall was driven by a 0.2% fall in services, which was partially offset by a 0.1% rise in construction. Production showed no growth.

Over the three months to April, real GDP grew by 0.7% compared with the three months to January. This follows 0.6% growth in the period to March and a 0.5% rise in the three months to February.

Services output grew by 0.8%, after also growing by 0.8% in the March period. Production output contracted by 0.1%, after 0.2% growth in the three months to March.

Construction output increased by 1.6%, following a 0.4% rise in the three months to March.

On an annual basis, GDP is estimated to have grown by 1.1% in the three months to April. GDP is estimated to be 1.2% higher in April compared with the same month a year ago.

Also on Friday, trade data showed the UK total goods and services trade deficit widened by £7.7 billion to £9.9 billion in the three months to April.

Goods imports increased by 1.5%, or £800 million, in April. A rise in imports from the EU was partially offset by a fall in non-EU imports.

The value of exports rose by 2.6%, £800 million, with increases in both EU and non-EU countries.

The trade in goods deficit widened by £7.6 billion to £62.5 billion, while the trade in services surplus is estimated to have narrowed by £200 million to £52.6 billion.

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