{"text":[[{"start":6.9,"text":"The UK economy contracted 0.1 per cent in April, led by a slowdown in the dominant services sector, in the latest sign of the chilling effect of the Middle East war."}],[{"start":16.6,"text":"Friday’s figure from the Office for National Statistics was in line with the month-on-month decline in GDP forecast by economists. "}],[{"start":25.150000000000002,"text":"In the three months to April, a less volatile measure, the economy expanded 0.7 per cent compared with the previous three-month period, also matching forecasts. "}],[{"start":35.35,"text":"April’s weakness was due to a contraction in the services sector, where output fell 0.2 per cent from the previous month as companies reported reduced turnover after the closure of the Strait of Hormuz sent energy prices soaring. "}],[{"start":50.5,"text":"The ONS said the biggest drag on GDP came from businesses in the arts, entertainment and recreation industry, which was hit by the cancellation of sporting events in the Middle East following the outbreak of the conflict. "}],[{"start":63.7,"text":"Retail activity also fell sharply, reversing a rise in March, when drivers loaded up on petrol amid fears that prices at the pump would head even higher. "}],[{"start":73.55,"text":"The economy’s subdued performance in April is another blow for embattled Prime Minister Sir Keir Starmer, who is expected to face a leadership challenge if Andy Burnham wins the Makerfield by-election next week."}],[{"start":86.05,"text":"Signs that the war is choking off growth are likely to reinforce expectations that the Bank of England’s rate-setters will leave interest rates on hold at 3.75 per cent next week. In contrast, the European Central Bank raised rates on Thursday to counter the inflation threat."}],[{"start":102.65,"text":"April’s GDP figures extend a run of data that suggest the economy has lost momentum after a strong start to the year, with the job market weak, wage growth slowing and underlying price pressures easing."}],[{"start":115.65,"text":"Ruth Gregory, at the consultancy Capital Economics, said “the strong start to the year is now faltering”, adding that she expected the BoE would keep rates on hold for the rest of the year."}],[{"start":126.25,"text":"Responding to Friday’s figures, chancellor Rachel Reeves insisted that “our economic plan is the right one,” adding that the UK was “in a stronger position to deal with the costs of the war” as a result of the government’s policies. "}],[{"start":139.9,"text":"Reeves has claimed that the repercussions from the war hit the economy just as it was turning a corner, pointing to stronger growth in the first quarter and signs that inflation was abating."}],[{"start":149.75,"text":"The ONS data pointed to sustained strength in the tech sector in particular in April, driven by growth in computer programming, consultancy and information service activities. "}],[{"start":160.9,"text":"Manufacturing also remained resilient and activity in construction continued to grow, defying gloomy expectations. "}],[{"start":168.3,"text":"But economists cautioned that, despite these pockets of strength, the economy faced challenges over the rest of the year."}],[{"start":175.9,"text":"Thomas Pugh, chief economist at the audit firm RSM UK, said that even with a swift resolution to the Middle East conflict, “higher energy prices and borrowing costs, along with a renewed bout of political uncertainty, are likely to conspire to bring growth almost to a standstill for the rest of the year”. "}],[{"start":193.4,"text":"Yael Selfin, chief economist at KPMG, said the figures showed the UK’s “renewed fragility”, with consumers likely to cut spending in the face of higher energy bills later this year. "}],[{"start":205.4,"text":"Additional reporting by Ian Smith"}],[{"start":215.25000000000003,"text":""}]],"url":"https://audio.ftcn.net.cn/album/a_1781254139_1920.mp3"}