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UK economy shrinks as Iran war begins to take its toll

Early 2026 momentum is likely to be derailed further as business confidence ebbs
CoStar Analytics
June 12, 2026 | 10:13 AM

The impact of the Iran war on UK economic growth was seen for the first time in April as the economy shrank for the first time since August, with the momentum built up earlier in the year likely to recede further.

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