UK economy shrinks for second month in a row after unexpected slump in May

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The UK economy shrunk by 0.1 per cent in May even after US president Donald Trump’s sweeping tariffs were paused, according to official figures.

Office for National Statistics data showed also showed a 0.3 per cent contraction in April, when US president Donald Trump announced his country-specific tariffs and sparked a global trade war.

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.

“May’s fall in production was driven by oil and gas extraction, car manufacturing and the often-errative pharmaceutical industry.

“While services grew overall in May with a strong month for legal firms, which recovered from a weak April, and computer programming, these were partially offset by a very weak month for retail sales.”

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