UK GDP Shrank 0.1% in April as War Hit Sports, Events

The U.K. economy contracted 0.1% in April, the Office for National Statistics said Friday, matching the consensus from a Reuters poll of economists. A 0.2% drop in services output drove the decline, partly offset by a 0.1% rise in construction. Production output was flat for the month.

The biggest single drag came from sports and recreation activities, which fell 9.1%. The ONS said that was the largest negative contribution from any one industry to both services output and GDP. The war in the Middle East was a factor: the cancellation of sporting events in the region hit revenue for U.K.-based companies operating in that space.

“A common theme of the comments received was the increase in prices because of the Middle East conflict,” the ONS said. “These comments were mainly for energy and fuel costs, with some suggesting an impact seen in April 2026 and also suggesting an impact for future months.”

Companies in manufacturing, wholesale, transportation support and travel agencies all reported that the conflict contributed to lower turnover in April. The ONS noted that the price increases tied to the war were concentrated in energy and fuel costs, a channel that could persist if the conflict continues.

The April print followed 0.3% growth in March, 0.4% in February and no change in January. The back-to-back gains in the first quarter had suggested the economy was shaking off the drag from earlier in the year. The April data shows the war is still weighing on activity, particularly in services that depend on travel and events.

The next GDP release for May is due in July. The ONS will also publish more detailed sector data in the coming weeks, which should clarify whether the drag from the war is broadening beyond sports and recreation into other parts of the services economy.