Economy & Trade
UK economy grows 0.1 percent in May as services expand
Britain's economy grew by 0.1 percent in May, a slight rebound after gross domestic product contracted by 0.1 percent in April, official data showed Thursday.
The Office for National Statistics said the May growth came from a 0.3 percent rise in services output. The April contraction came as the US-Iran war pushed up inflation after oil prices rose sharply.
The data was released as Andy Burnham prepared to take over as prime minister on Monday. Keir Starmer resigned as prime minister and Labour Party leader last month, after months of internal pressure following scandals, economic missteps and policy reversals.
Paul Dales, chief UK economist at Capital Economics, said the latest figures were "not a bad welcome gift" for Burnham. He said that even if output is flat in June, the economy would have expanded by 0.4 percent across the second quarter. Dales said this suggested the economy had been more resilient to higher energy prices than expected.
The OECD grouping of industrialised nations forecast on Wednesday that UK economic growth would slow to 0.9 percent this year from 1.4 percent in 2025, before picking up to 1.1 percent next year.
Update
The report says Andy Burnham is preparing to take over as prime minister on Monday.
It says Keir Starmer resigned as prime minister and Labour leader last month after internal pressure following scandals, economic missteps and policy reversals.
Paul Dales of Capital Economics said the May data was not a bad welcome gift for incoming prime minister Andy Burnham.
Dales said that if June output is flat, the economy would have grown 0.4 percent in the second quarter.
Dales said the figures suggest the economy has been more resilient than expected to higher energy prices.
The OECD forecast UK growth of 0.9 percent this year, down from 1.4 percent in 2025, before rising to 1.1 percent next year.
Source note: AFP news report published on 16 July 2026 at 08:14:58 UTC.
Update
The Office for National Statistics said services output rose by 0.3 percent in May.
Andy Burnham is preparing to take over as prime minister on Monday.
Keir Starmer resigned as prime minister and Labour leader last month after internal pressure linked to scandals, economic missteps and policy reversals.
The OECD forecast UK growth of 0.9 percent this year, down from 1.4 percent in 2025, before growth rises to 1.1 percent next year.
Source note: AFP news report published on 16 July 2026 at 06:37:47 UTC.
Update
The Office for National Statistics said gross domestic product expanded by 0.1 percent in May.
GDP had contracted by 0.1 percent in April.
The source said Andy Burnham is set to replace Keir Starmer as prime minister on Monday.
Source note: AFP news report published on 16 July 2026 at 06:19:32 UTC.
Uncertainty notes
June output was not yet known in the source and was discussed as a condition in the analyst's estimate.
The OECD figures are forecasts, not final economic outcomes.
Source
AFP news report published on .