UK Economy Seen Shrinking 0.1% in April as Iran Energy Shock and Strikes Bite
Updated
Updated · OilPrice.com · Jun 10
UK Economy Seen Shrinking 0.1% in April as Iran Energy Shock and Strikes Bite
3 articles · Updated · OilPrice.com · Jun 10
Summary
Economists expect UK GDP to have fallen 0.1% in April, reversing some of the 0.6% first-quarter growth when official data are released Friday.
Deutsche Bank and other analysts say the slowdown reflects Iran-driven energy costs hitting households and businesses, weaker spending, and firms pulling back as Strait of Hormuz trade disruption curbs stockpiling.
Domestic drags also mounted: retail sales fell 0.4%, services are expected to cool after a strong start to the year, and London Underground plus doctor strikes likely weighed on activity.
June resident doctor strikes are seen as another downside risk, while business groups are pressing Chancellor Rachel Reeves to accelerate growth measures amid political uncertainty over her future.
Reeves on Tuesday pitched wider AI adoption as a productivity lever, but a government-backed report said skills shortages and unclear regulation remain major barriers.