“This decline is the first economic blow landed by the Iran conflict as falling fuel sales and slowing services output meant the UK’s early-year growth momentum stalled in April.
“Skyrocketing fuel costs have noticeably altered the UK’s growth trajectory having flipped from a tailwind to growth in March to a headwind in April as motorists cut consumption in the face of surging pump prices, after frontloading purchases in March.
“April’s drop likely signals the start of a damaging descent into stagflation with surging energy costs, supply chain disruption and geopolitical instability set to suffocate growth, despite a summer World Cup boost for hospitality and some retailers.
“These disheartening figures mean that UK rate-setters are unlikely to follow their eurozone counterparts in raising rates this month by giving policymakers hope that a slowing economy can limit inflation enough for them to delay tightening policy.”
ENDS
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* includes parent companies. Source: ICAEW member data March 2026, Interbrand, Best Global Brands 2025.
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