The UK economy unexpectedly shrank in May as manufacturing activity plummeted, dealing a blow to hopes of sustained recovery. Official figures revealed the setback came despite economists predicting modest growth for the month.
The Office for National Statistics (ONS) said gross domestic product (GDP) contracted by 0.1% in May, following a 0.3% drop in April. Most economists had forecast slight growth of 0.1% for May.
Manufacturing sector suffers steep decline
Manufacturing activity dropped 1% in May, continuing a sharp fall from April after surging earlier in the year. The earlier boost came as US importers stockpiled goods ahead of President Donald Trump's tariff rises, which took effect at the start of April.
Liz McKeown from the ONS said the economy contracted slightly in May with notable falls in production and construction. These declines were only partially offset by growth in services, she explained.
Three-month picture shows growth
However, across the latest three months as a whole, the economy still grew. This reflected strength earlier in the year that resulted, in part, from some activity being brought forward to February and March, McKeown added.
Services grew overall in May with a strong month for legal firms, which recovered from a weak April, and computer programming. These gains were partially offset by a very weak month for retail sales, according to the ONS.
(PA/London) Note: This article has been edited with the help of Artificial Intelligence.
