UK financial system shrinks for second month in a row after sudden droop in Could

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Your help makes all of the distinction. Learn extra The UK financial system shrunk in Could even after US president Donald Trump’s sweeping tariffs have been paused, in keeping with official figures.

The Workplace for Nationwide Statistics (ONS) mentioned gross home product (GDP) contracted by 0.1 per cent in Could. Specialists had anticipated slight progress of 0.1 per cent in Could.

It adopted a 0.3 per cent drop in April, when US president Donald Trump introduced his country-specific tariffs and sparked a world commerce battle.

Chancellor Rachel Reeves mentioned the figures have been “disappointing” and he or she was “”decided to kickstart financial progress”.

GDP surged earlier within the 12 months as US importers stocked up forward of US President Donald Trump’s tariff rises, which got here into impact at the beginning of April.

<img src="https://static.independent.co.uk/2025/07/08/17/d7db6f8c7e58332474b555b940219d11Y29udGVudHNlYXJjaGFwaSwxNzUyMDc4Mjc0-2.78900041.jpg" srcset="https://static.independent.co.uk/2025/07/08/17/d7db6f8c7e58332474b555b940219d11Y29udGVudHNlYXJjaGFwaSwxNzUyMDc4Mjc0-2.78900041.jpg?quality=75&width=320&auto=webp 320w, https://static.independent.co.uk/2025/07/08/17/d7db6f8c7e58332474b555b940219d11Y29udGVudHNlYXJjaGFwaSwxNzUyMDc4Mjc0-2.78900041.jpg?quality=75&width=640&auto=webp 640w" loading="lazy" alt="The Office for National Statistics (ONS) said gross domestic product (GDP) contracted by 0.1 per cent in May" class="sc-1mc30lb-0 ggpMaE inline-gallery-btn"/> open picture in gallery

The Workplace for Nationwide Statistics (ONS) mentioned gross home product (GDP) contracted by 0.1 per cent in Could (PA Wire) Ms Reeves mentioned: “Getting extra money in individuals’s pockets is my primary mission. Whereas at this time’s figures are disappointing, I'm decided to kickstart financial progress and ship on that promise.”

ONS director of financial statistics Liz McKeown mentioned: “The financial system contracted barely in Could with notable falls in manufacturing and building, solely partially offset by progress in providers.

“Nonetheless, throughout the newest three months as an entire, the financial system nonetheless grew. This mirrored power earlier within the 12 months that resulted, partially, from some exercise being introduced ahead to February and March.

“Could’s fall in manufacturing was pushed by oil and fuel extraction, automotive manufacturing and the often-errative pharmaceutical trade.

<img src="https://static.independent.co.uk/2025/07/04/00/b8716c8a82fe03e5389d9f509a6094d8Y29udGVudHNlYXJjaGFwaSwxNzUxNjI1OTAz-2.77197529.jpg" srcset="https://static.independent.co.uk/2025/07/04/00/b8716c8a82fe03e5389d9f509a6094d8Y29udGVudHNlYXJjaGFwaSwxNzUxNjI1OTAz-2.77197529.jpg?quality=75&width=320&auto=webp 320w, https://static.independent.co.uk/2025/07/04/00/b8716c8a82fe03e5389d9f509a6094d8Y29udGVudHNlYXJjaGFwaSwxNzUxNjI1OTAz-2.77197529.jpg?quality=75&width=640&auto=webp 640w" loading="lazy" alt="The UK economy shrank by 0.1 per cent in May" class="sc-1mc30lb-0 ggpMaE inline-gallery-btn"/> open picture in gallery

The UK financial system shrank by 0.1 per cent in Could (PA Archive) “Whereas providers grew general in Could with a powerful month for authorized companies, which recovered from a weak April, and pc programming, these have been partially offset by a really weak month for retail gross sales.”

Confederation of British Business lead economist Ben Jones added: “Flatlining progress in Could highlights the continuing pressures going through the UK financial system, with manufacturing and retail struggling, alongside a patchy efficiency throughout different components of the providers sector.

“At present’s information suggests {that a} sluggish restoration stays the likeliest path within the near-term amid persistent commerce uncertainty, a loosening labour market and slowing progress in actual incomes.

<img src="https://static.independent.co.uk/2025/06/05/23/23/Donald-Trump.jpeg" srcset="https://static.independent.co.uk/2025/06/05/23/23/Donald-Trump.jpeg?quality=75&width=320&auto=webp 320w, https://static.independent.co.uk/2025/06/05/23/23/Donald-Trump.jpeg?quality=75&width=640&auto=webp 640w" loading="lazy" alt="The UK economy shrunk in May even after US president Donald Trump’s sweeping tariffs were paused, according to official figures" class="sc-1mc30lb-0 ggpMaE inline-gallery-btn"/> open picture in gallery

The UK financial system shrunk in Could even after US president Donald Trump’s sweeping tariffs have been paused, in keeping with official figures (Getty) “With rising fiscal challenges and the Autumn Price range on the horizon, the Chancellor should present clear reassurance—no new taxes on enterprise and as an alternative provide a dedication to work alongside companies to dismantle boundaries to progress.