Production at the country’s factories contracted more than expected in April as evolving U.S. trade policy brought a halt to a surprising surge in activity.

The large service side of the U.S. economy contracted in May for the first time in almost a year, another victim of ongoing trade wars that have frozen hiring and caused havoc among businesses.

The UK economy contracted by 0.3 per cent in April in another blow to Rachel Reeves, figures from the Office for National Statistics have shown. The chancellor - who unveiled her spending review yesterday - acknowledged that the latest GDP figures were "clearly disappointing" but insisted her plan for the economy would help deliver growth.

In a scathing assessment, the Institute for Fiscal Studies (IFS) suggested the Treasury was at times ‘making up the numbers’

National Statistics revealed that the UK economy contracted by 0.3 per cent in April, marking the worst monthly drop since October 2023

Futures data from IG suggests London's FTSE will open 33 points lower at 8,838, Germany's DAX down 189 points at 23,783, France's CAC 40 down 44 points at 7,732 and Italy's FTSE MIB 282 points lower at 39,858.

The UK economy shrank by 0.3% in April, figures revealed on Thursday, in a blow to Chancellor Rachel Reeves as her Spending Review comes under growing scrutiny.