UK economy posts 0.1% growth in May, services sector leads

The UK economy returned to modest growth in May, expanding by 0.1 percent after a contraction of 0.1 percent in April, according to official figures published on July 16, 2026. The data from the Office for National Statistics indicates a fragile and uneven recovery, with the services sector providing the sole positive contribution for the month.

Growth in May was driven entirely by a 0.3 percent expansion in services output, which includes computer programming and advertising. This was offset by declines of 0.5 percent in production and 0.8 percent in construction. Over the broader three-month period to May, the economy showed more robust growth of 0.7 percent, though this marked a slight deceleration from an upwardly revised 0.8 percent in the three months to April. Liz McKeown, director of economic statistics at the ONS, said the economy recorded robust growth over the quarter, but noted the pace had eased as the latest two months presented a weaker picture.

Economists and business leaders highlighted that the muted monthly figure underscores persistent challenges. The ongoing conflict in the Middle East, frequently cited by businesses in official surveys, continues to disrupt...