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UK GDP rose 0.1% in May as Iran war lifted energy costs
The Office for National Statistics said May growth followed a 0.1% April contraction, and it pointed to higher petrol and other energy costs tied to the Iran war.
The UK economy grew by 0.1% in May despite pressure from the Iran war, with official data showing growth after a contraction earlier in the year. According to figures from the Office for National Statistics, GDP rose in May following a 0.1% decline in April.
The May increase matched economist expectations, but the ONS tied the underlying cost pressure to higher petrol and other energy expenses driven by the conflict. The report also described the economy as more resilient than some analysts had feared given the setback in April.
HousingWire reports the International Monetary Fund recently upgraded its forecast for UK GDP growth for the year as a whole to 1%, an increase of 0.2 percentage points from its prior outlook. The outlook remains uncertain, with the Resolution Foundation warning that more than half of the £23.6bn of “headroom” left under fiscal rules could be wiped out by war-related effects on the economy.