The UK economy has shrunk for the second month running, in a blow for the chancellor, Rachel Reeves.
UK GDP contracted by 0.1% in May, data from the Office for National Statistics shows, rather weaker than the 0.1% growth expected.
The fall follows a 0.3% drop in GDP in April, and growth of 0.4% in March (revised up from +0.2%).
May’s contraction was driven by a slump in industrial production, and construction work, with modest growth in the services sector.
Monthly services output grew by 0.1% in May 2025, after a fall of 0.3% in April 2025 (revised up from a 0.4% fall in our previous publication), and grew by 0.4% in the three months to May 2025.
Production output fell by 0.9% in May 2025, after an unrevised fall of 0.6% in April 2025, but grew by 0.2% in the three months to May 2025.
Construction output fell by 0.6% in May 2025, after growth of 0.8% in April 2025 (revised down from 0.9% growth in our previous publication), but grew by 1.2% in the three months to May 2025.
Reeves described the GDP figures as disappointing.
She said: “Getting more money in people’s pockets is my number one mission. While today’s figures are disappointing, I am determined to kickstart economic growth and deliver on that promise.
“The choices we have made in our first year in government have seen us extend the £3 bus fare cap, fund free school meals for over half a million more children, press ahead with plans to deliver free breakfast clubs for every child in the country and increase the national minimum and national living wage, giving a pay rise to 3 million workers.
“There’s more to do, that’s why in the spending review we boosted investment and jobs, through better city region transport and record funding for affordable homes, as well as backing major projects like Sizewell C.”
The agenda • 9am BST: IEA’s monthly oil market report • 2pm BST: Russia’s trade balance for May
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