The prevailing softness reflects mounting concerns regarding global demand in the context of escalating trade tensions between the United States and its trading partners, including the European Union.
The euro was at a three-week low against the US dollar as renewed trade tensions, fueled by President Trump's tariff announcement, weighed on the common currency.
The OECD has lowered the UK economic growth forecast for 2026 from 1.2% to 1% due to heightened trade tensions and elevated uncertainty.
The US Dollar edged higher on Tuesday, stabilizing after a decline at the start of the week, though it remained near multi-week lows.
The authorities' structural reforms, including to planning, and the increase in infrastructure investment could increase potential growth if properly implemented.
A new survey by the European Central Bank suggests that President Donald Trump's tariffs on EU products could trigger a major, long-lasting change in European consumer habits.
"The 30-year fixed-rate mortgage ticked up but remains below the 7% threshold for the thirteenth consecutive week," says Sam Khater, Freddie Mac's chief economist. "At this time last year, rates reached 7.1% while purchase application demand was 13% lower than it is today, a clear sign that this year's spring homebuying season is off to a stronger start."