Home›Forex›Central Banks›UK GDP rises 0.1% in May as services offset weaker pro…

UK GDP rises 0.1% in May as services offset weaker production

GDP increased 0.1% month-on-month after April contracted 0.1%, with services output up 0.3% while production fell 0.5% and construction dropped 0.8%.

Reported · Written up by our desk · Central Banks

The UK economy returned to modest growth in May, with GDP rising 0.1% month-on-month after a 0.1% contraction in April, according to Action Forex. The print slightly beat expectations for a flat reading and signaled some momentum after a soft start to the second quarter, though the underlying recovery remains uneven.

Growth was driven almost entirely by services, which expanded 0.3% month-on-month as seven of 14 subsectors rose. Services also continued to provide the main support for the economy, reflecting resilience in consumer-facing and business services despite elevated interest rates and global uncertainty.

By contrast, production declined 0.5% month-on-month, led by a sharp 4.6% drop in mining and quarrying, alongside weakness in utilities and waste management. Manufacturing was a rare bright spot, edging up 0.1% and limiting the broader fall in industrial output.

Construction also weighed on activity, falling 0.8% month-on-month after a revised 0.1% decline in April, consistent with higher borrowing costs restraining investment. Over the three months to May, GDP grew 0.7%, following 0.8% growth in the prior three-month period, with services up 0.7% and construction rising 1.6%.

More like this

Sources