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UK Economy Rebounds Slightly in May Amid Political Transition
🇳🇬 Nigeria /Economy & Trade

UK Economy Rebounds Slightly in May Amid Political Transition

From Vanguard · () English

Translated from English, summarized and contextualized by DistantNews.

At a glance

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  • The UK economy saw a slight rebound in May, growing by 0.1 percent primarily due to expansion in the services sector.
  • This follows a 0.1 percent contraction in April, influenced by rising inflation from soaring oil prices amid the US-Iran war.
  • The OECD forecasts slower UK growth of 0.9 percent for the current year, down from 1.4 percent in 2025.

Britain's economy showed signs of recovery in May, expanding by 0.1 percent after a contraction in the previous month. Official data from the Office for National Statistics revealed that growth was driven by a 0.3 percent increase in the services sector output.

The growth in May was because of a rise of 0.3-percent (output) in services.

— Office for National StatisticsThe ONS statement explains the primary driver of the UK's economic growth in May.

This modest rebound offers a glimmer of positive news as the nation prepares for a new prime minister. The economy had previously contracted by 0.1 percent in April, a downturn attributed partly to increased inflation fueled by soaring oil prices resulting from the US-Iran conflict.

Analysts suggest the May figures provide a welcome, albeit small, boost for the incoming prime minister. "The latest data is not a bad welcome gift for incoming PM Andy Burnham," noted Paul Dales, chief UK economist at Capital Economics. He added that even if output remains flat in June, the economy would still show 0.4 percent growth for the second quarter, indicating resilience against rising energy prices.

The latest data is not a bad welcome gift for incoming PM Andy Burnham.

— Paul Dales, chief UK economist at Capital EconomicsDales comments on the economic data in the context of the upcoming change in prime minister.

However, the broader economic outlook remains cautious. The OECD recently forecast that the UK economy is expected to slow to 0.9 percent growth this year, a decrease from 1.4 percent in 2025, before a slight pickup to 1.1 percent next year. This projection highlights ongoing challenges despite the recent positive data.

This suggests that the economy has been more resilient to the rise in energy prices than expected.

— Paul Dales, chief UK economist at Capital EconomicsDales assesses the economy's ability to withstand energy price increases.
DistantNews Editorial

Originally published by Vanguard in English. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.

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