'Clearly disappointing' as Trump tariffs hit economy

THE economy saw the biggest monthly contraction for 18 months in April as manufacturing activity pulled back sharply amid a record drop in exports to the United States following President Donald Trump's tariff hikes.

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Official figures showed gross domestic product (GDP) fell by 0.3% in April, compared with growth of 0.2% the previous month, and marking the biggest contraction since October 2023. It was worse than the 0.1% contraction expected by economists.

Chancellor Rachel Reeves acknowledged that the latest GDP figures were “clearly disappointing”, but insisted her spending review would help deliver growth.