Chancellor Rachel Reeves described the figures as “disappointing”.
Monthly actual gross home product (GDP) is estimated to have fallen by 0.1% in May 2025, following an unrevised fall of 0.3% in April 2025, in line with the Office for National Statistics (ONS).
Services grew by 0.1%, whereas manufacturing and development each fell – by 0.9% and 0.6% respectively.
On the plus aspect, actual GDP is estimated to have grown by 0.5% in the three months to May 2025 in contrast with the three months to February 2025, largely pushed by development in the providers sector in this era. This mirrored development earlier in the 12 months that resulted, in half, from some exercise being introduced ahead to February 2025 and March 2025.
There was development in all three important sectors in the three months to May 2025. This included a rise of 0.4% in providers sector output, which was the principle contributor to the rise in GDP. Production and development output grew by 0.2% and 1.2% respectively.
Kevin Brown, financial savings professional at Scottish Friendly, mentioned: “After a weak exhibiting in April, this month’s GDP information is one other bitter tablet for the Chancellor. The UK’s funds had been already exhibiting actual pressure, and this leaves the Chancellor with extra holes to fill. It is the fiscal equal of whack-a-mole – each time Rachel Reeves solves one drawback, one other emerges.
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“Real challenges lie forward. The authorities’s failure to push by means of welfare cuts has blown a gap in its price range, more likely to be crammed by tax rises in the autumn. While there stays appreciable hypothesis on what these tax rises may be, they might gradual UK financial development even additional.
“The UK economy additionally continues to wrestle with a insecurity. While many households have extra disposable revenue due to wage will increase which have outpaced inflation, massive numbers stay hesitant to spend. A extra optimistic take is that the UK nonetheless has the capability to show its fortunes round. It simply wants a interval of stability, however that has proved elusive.”
