UK Economy Grows 0.1% in May, Offsetting April Decline Amid Resilience
| Pair | Now | Since publish |
|---|---|---|
| GBPUSD | — | — |
| EURGBP | — | — |
- UK economy grew 0.1% in May, beating flat forecasts.
- Services sector rebounded 0.3%; industrial/construction output contracted.
- April’s 0.1% decline revised higher, less severe.
- May growth unexpected; April decline first since Oct 2025.
The United Kingdom’s economy expanded by 0.1% in May, according to official figures released by the Office for National Statistics. This growth followed a 0.1% decline in April and surpassed the consensus forecast for a flat reading, indicating greater resilience among consumers and businesses than previously anticipated. The expansion was primarily driven by a 0.3% rise in the services sector output. This performance occurred despite ongoing challenges such as elevated energy prices and geopolitical instability, including the impact of the Middle East conflict. The International Monetary Fund recently upgraded its annual GDP growth forecast for the UK to 1%, an increase of 0.2 percentage points from its prior estimate.
The UK economy’s 0.1% growth in May was driven by a rebound in the services sector, while industrial and construction output contracted. This growth was unexpected, as GDP was forecast to remain flat. The Office for National Statistics reported that the 0.1% fall in April was revised higher, making the decline less severe than previously understood, and was the first drop since October 2025.