The UK economy shrunk in May even after US president Donald Trump’s sweeping tariffs were paused, according to official figures.
The Office for National Statistics (ONS) said gross domestic product (GDP) contracted by 0.1 per cent in May. Experts had expected slight growth of 0.1 per cent in May.
It followed a 0.3 per cent drop in April, when US president Donald Trump announced his country-specific tariffs and sparked a global trade war.
Chancellor Rachel Reeves said the figures were “disappointing” and she was “”determined to kickstart economic growth”.
GDP surged earlier in the year as US importers stocked up ahead of US President Donald Trump’s tariff rises, which came into effect at the start of April.
Ms Reeves said: “Getting more money in people’s pockets is my number one mission. While today’s figures are disappointing, I am determined to kickstart economic growth and deliver on that promise.”
ONS director of economic statistics Liz McKeown said: “The economy contracted slightly in May with notable falls in production and construction, only partially offset by growth in services.
“However, across the latest three months as a whole, the economy still grew. This reflected strength earlier in the year that resulted, in part, from some activity being brought forward to February and March.
Ms McKeown said May’s fall in production was driven by oil and gas extraction, car manufacturing and the pharmaceutical industry.
Confederation of British Industry lead economist Ben Jones added: “Flatlining growth in May highlights the ongoing pressures facing the UK economy, with manufacturing and retail struggling, alongside a patchy performance across other parts of the services sector.
“Today’s data suggests that a sluggish recovery remains the likeliest path in the near-term amid persistent trade uncertainty, a loosening labour market and slowing growth in real incomes.
“With growing fiscal challenges and the Autumn Budget on the horizon, the Chancellor must provide clear reassurance—no new taxes on business and instead offer a commitment to work alongside firms to dismantle barriers to growth.
“An open and collaborative partnership between business and government is crucial to deliver the conditions for sustained economic growth.”
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