UK gross domestic product (GDP) fell by 0.1% month-on-month in April for the first time since August 2025, the Office for National Statistics (ONS) has revealed.

The latest data follows growth of 0.3% in March and 0.4% in February.

The drop in monthly GDP was attributed to a 0.2% reduction in services output and no growth in production output. Output in the construction sector grew by 0.1% in April.

In the three months to April, real GDP is estimated to have grown by 0.7% compared to the three months to January.

This follows growth of 0.6% and 0.5% in the three months to March and February respectively.

In the three months to April, growth was recorded across services (0.8%) and construction output (1.6%), although there was a 0.1% reduction in production output in this period.

The ONS found that many businesses had been impacted by the outbreak of the Middle East conflict at the end of February, especially in increases to energy and fuel costs, which had continued into April.

Portfolio manager at Quilter, Stuart Clark, said that the latest data "isn’t pretty reading for the UK".

He added: "After a surprisingly robust first quarter, April has seen GDP shrink by 0.1% as households and businesses alike have tightened their belts in the face of increasing costs and postponements of sporting events in the Middle East saw the services sector contract consequently.

"While the three-month growth has held up, the first quarter of the year is looking very much like a false dawn, and with repeated resolutions between the US and Iran failing to pass, conditions are going to remain tough for longer still."

Savings expert at Scottish Friendly, Kevin Brown, concluded: “We expect the Bank of England's Monetary Policy Committee to hold rates when it meets next week. UK inflation remains above the 2% target but has not spiralled because of the conflict, while the economy is holding up relatively well, all things considered. Increasing rates would act as an anchor on the economy and a fragile labour market.

"For UK households, the message is the same regardless of what the MPC decides: build a financial buffer if you can and make sure your money is working as hard as possible, whether that means shopping around for a better savings rate or putting spare cash to work in the stock market for the long term."

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