The UK economy shrunk again in May, against expectations of growth.
According to new figures from the Office for National Statistics (ONS), GDP (gross domestic product), a key measure of economy growth, is estimated to have fallen by 0.1% month-on-month in May, following a 0.3% drop in April, versus market expectations of 0.1% growth.
It reflects, across key sectors, services output growing by 0.1% month-on-month, construction output declining 0.6% month-on-month, and production output falling 0.9% month-on-month.
Ben Jones, CBI lead economist, said: “Flatlining growth in May highlights the ongoing pressures facing the UK economy, with manufacturing and retail struggling, alongside a patchy performance across other parts of the services sector.
“Today’s data suggests that a sluggish recovery remains the likeliest path in the near-term amid persistent trade uncertainty, a loosening labour market and slowing growth in real incomes. And with business costs rising, many firms are maintaining a cautious approach to investment.
“With growing fiscal challenges and the Autumn Budget on the horizon, the Chancellor must provide clear reassurance—no new taxes on business and instead offer a commitment to work alongside firms to dismantle barriers to growth. An open and collaborative partnership between business and government is crucial to deliver the conditions for sustained economic growth.”
