(Sharecast News) – The UK’s economy contracted in May, official data showed on Thursday, although the decline was not as steep as expected.
According to the Office for National Statistics, GDP fell by 0.1% in May following growth of 0.2% in April. It was slightly better that forecasts, however, with most economists pencilling a fall of 0.3% because of the extra bank holiday for the King’s coronation on 6 May and the impact of public sector strikes.
The construction sector eased by 0.2%, following a fall of 0.9% in April – revised down from an earlier estimate for a 0.6% decline – while production output fell 0.6%.
The dominant services sector stagnated, compared to a 0.3% uptick seen a month previously.
The services sector also showed no growth in the three months to May, while production grew by 0.4% and construction by 0.2%.
Overall, GDP was flat in the three months to May when compared to the three months to February.
Monthly GDP is now estimated to be 0.2% above pre-pandemic levels in February 2020.
