UK economy shrinks for second month in a row after unexpected slump in May
UK economy shrinks unexpectedly in May despite Trump pausing tariffs
- The UK economy contracted by 0.1 per cent in May, contrary to expert forecasts of slight growth.
- This decline followed a 0.3 per cent contraction in April, a period when US president Donald Trump announced tariffs.
- Despite the recent monthly falls, the Office for National Statistics reported that the economy still grew across the latest three-month period overall.
- May's contraction was primarily driven by notable decreases in production and construction, although growth in the services sector provided some offset.
- Economists and the Chancellor expressed concern over the figures, citing ongoing pressures, trade uncertainty, and the need to stimulate economic growth.