UK economy began to feel fallout from Iran war in April, shows data

United Kingdom: Britain’s economy contracted by 0.1% in April, its first monthly drop since August as the Iran war’s cancellation of Formula 1 Grand Prix races and other Gulf sporting events delivered a heavy blow to the British entertainments industry.

The Office for National Statistics (ONS) said output in the services sector declined in April by 0.2%, dragged down by administration and support services, as well as the arts, recreation and entertainment sectors.

The outbreak of war resulted in the cancellation of Formula 1 Grand Prix races in Bahrain and Saudi Arabia, which had been due to take place in April.

Tennis and soccer events were also called off.Manufacturing output rose by 0.4% in April — helped by a rise in pharmaecuticals production which is often sees large swings — helping to offset a bad month for the services sector.

Output in the three months to April was 0.7% higher than the previous three months, as economists had expected.