UK GDP falls by 0.1% in May 'increasing chances' of August rate cut

Second monthly decline in a row

Industry professionals have reacted with disappointment to the latest monthly UK GDP figures for May, which showed the economy contracted by 0.1%.

The May contraction followed another 0.3% decline the month before, with the overall GDP levels forecast to have increased by 0.5% in the three months to May, according to data from the Office for National Statistics (ONS) today (11 July). Production output worsened over the month, falling by 0.9% after an unchanged fall of 0.6% in April, while the construction sector dipped by 0.6% in May from a 0.8% growth the month before. UK fastest growing G7 economy in Q1 2025 However, monthly services saw tepid growth of 0.1%, marking a recovery from a 0.3% decline in April. This add...