Official figures released on Thursday indicate that the United Kingdom experienced a modest 0.1 percent economic growth in May, driven by an uptick in the services sector. This performance follows a 0.1 percent contraction in April, which was triggered by surging oil prices amid the conflict between the United States and Iran.
The Office for National Statistics attributed the positive shift primarily to a 0.3 percent increase in service-related output. This report surfaces just before Andy Burnham is scheduled to assume the role of prime minister this coming Monday. Burnham succeeds Keir Starmer, who resigned from his leadership positions last month following prolonged internal political pressure.
Paul Dales, chief UK economist at Capital Economics, described the figures as a favorable introduction for the incoming leader. Dales suggested that even if performance remains stagnant in June, the overall second-quarter growth would reach 0.4 percent. He observed that the national economy has demonstrated greater durability against rising energy costs than analysts initially anticipated.
Meanwhile, the OECD has projected that UK economic expansion will moderate to 0.9 percent this year, down from 1.4 percent in 2025, with an expected increase to 1.1 percent in the following year.
