Iran conflict strains UK economy

The British economy contracted by 0.1% in April 2026, marking its first monthly decline since August of last year, due to the cancellation of sports and entertainment events caused by the Iranian war. This had a negative impact on the service sector, which declined by 0.2%, while manufacturing output increased by 0.4%, helping to offset the losses. Additionally, economic growth over the past three months rose by 0.7% compared to the previous period.

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