UK Economy Sees Modest Growth in May 2026
The UK economy recorded a 0.1% growth in May 2026, reversing a contraction from the previous month, according to the Office for National Statistics.
By BBC News
The UK economy returned to growth in May 2026, with a 0.1% increase in monthly GDP, as reported by the Office for National Statistics (ONS). This modest growth follows a 0.1% contraction in April 2026. The expansion was primarily driven by a 0.3% rise in the services sector, although this was partially offset by declines of 0.5% in production and 0.8% in construction.
Over the three months leading to May, the economy grew by 0.7% compared to the previous three-month period, marking the sixth consecutive growth period. Annual GDP also saw an increase of 1.3% in May 2026.
Despite the positive figures, analysts noted that the economy remains fragile, particularly in light of the ongoing conflict in Iran, which has led to rising energy prices and disrupted supply chains. The ONS indicated that various sectors, including manufacturing, hospitality, and travel, reported challenges due to the conflict.
Fergus Jimenez-England, an associate economist at the National Institute of Economic and Social Research, stated that the latest data confirm the fragility of growth, especially as energy prices continue to rise. He emphasised the importance of stability from the new Prime Minister, Andy Burnham.
Yael Selfin, chief economist at KPMG, suggested that while warmer weather and events like the World Cup might boost consumer spending in the coming months, it may not be sufficient to counterbalance weaknesses in other areas of the economy.
In response to the growth figures, a spokesperson for HM Treasury highlighted the government's economic strategy, claiming it has positioned the UK stronger than two years ago, achieving the fastest growth in the G7 during the first quarter of 2026. However, Conservative shadow chancellor Sir Mel Stride critiqued the Chancellor Rachel Reeves for failing to stimulate growth, attributing the economic challenges to higher taxes.
Official data was released on July 16, 2026, by the ONS, which can be contacted for further information at gdp@ons.gov.uk or +44 1633 455284.