The UK economy shrank by 0.1% in May, following a 0.3% decline in April, signaling a worrisome trend for the economy that may be struggling to recover. The contraction was driven mainly by a 0.9% fall in industrial production and a 0.6% drop in construction output, although the services sector experienced a slight growth of 0.1%. Chancellor Rachel Reeves faces increasing pressure to present a clear strategy for boosting investment, as economic activity faces persistent pressures from trade uncertainty and a cooling labor market.
"Flatlining growth in May underscores the ongoing pressures on the economy, with manufacturing and retail continuing to struggle. Persistent trade uncertainty, a cooling labour market and slowing income growth all point to a sluggish recovery."
"Data from the ONS showed GDP contracted by 0.1% in May, following a sharper 0.3% drop in April, signaling a fragile recovery may be stalling despite some growth in the services sector."
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