Image source, Getty ImagesByNick EdserBusiness reporter- Published16 July 2026, 07:17 BST
The UK's economy returned to growth in May after having shrunk in the previous month, the latest official data has shown.
The economy expanded by 0.1%, the Office for National Statistics (ONS) said, driven by growth in the UK's service sector, although this was offset by falls in the production and construction sectors.
It comes after the economy had contracted slightly in April as the US-Israel war with Iran began to have an impact on businesses.
In the three months to May, the ONS said the economy grew by 0.7% compared with the previous three month period.
"The economy recorded robust growth in the three months to May, though the pace eased slightly as the latest two months showed a weaker picture," said Liz McKeown, director of economic statistics at the ONS.
Yael Selfin, chief economist at KPMG, said the warmer weather in May helped to boost consumer spending, which is likely to have continued into June and July thanks to the World Cup.
However, she added, while this would help the services sector, "it may not be enough to offset weakness across other parts of the economy".
"The recent rise in energy prices, driven by a pick-up in tensions in the Middle East, could pose a risk to the growth outlook, with financial conditions also tightening as a result," Selfin said.
Responding to the latest figures, a spokesperson for the Treasury said: "We have the right economic plan which has put the UK in a much stronger position than two years ago with the fastest growth in the G7 in the first quarter and the OECD agreeing that we have restored stability."
