UK economy shrinks in May
Output in consumer-facing services fell by 0.2% in May 2023 following growth of 1.1% in April 2023, revised up from growth of 1.0%
The UK economy contracted by 0.1% in May as output was negatively affected by the King’s coronation, according to the latest statistics from the Office for National Statistics (ONS).
On a three month basis GDP has shown no growth, however, monthly GDP is now estimated to be 0.2% above its pre-coronavirus (Covid-19) levels (February 2020).
Production output was the main contributor to the fall in monthly GDP in May as it fell by 0.6% after a fall of 0.2% in April 2023.
The construction sector also fell by 0.2% in May 2023 following a fall of 0.9% in April 2023, revised down from a fall of 0.6% in the previous publication.
Meanwhile, services output showed no growth in May 2023 following growth of 0.3% in April 2023, unrevised from the previous publication.
Finally, output in consumer-facing services fell by 0.2% in May 2023 following growth of 1.1% in April 2023, revised up from growth of 1.0%.
Director of Economic Statistics, Darren Morgan, said: “GDP fell slightly as manufacturing, energy generation and construction all fell back with some industries impacted by one fewer working day than normal. Meanwhile, despite the Coronation Bank Holiday, pubs and bars saw sales fall after a strong April. Employment agencies also saw another poor month.
“However, services were flat overall with health recovering, with less impact from strikes than in the previous month, and IT also had a strong month. Across the last three months as a whole the economy showed no growth.”
