UK Economy Shrunk 0.3% in April as Tariffs and Taxes Bite

Sharp tax increases and US President Donald Trump’s tariffs triggered the UK’s biggest monthly economic contraction in 18 months, casting doubt over the Labour government’s plan to fund its spending ambitions with faster growth.

Gross domestic product dropped 0.3% in April after healthy expansions in the previous two months, the Office for National Statistics said Thursday. Economists surveyed by Bloomberg had predicted a 0.1% decline. Services and manufacturing shrank, while construction grew.