UK Economy Returns to Growth in May

The UK economy grew by 0.1% month-on-month in May 2026, aligning precisely with market expectations. This modest expansion marks a timely stabilization, turning around from the 0.1% contraction witnessed during the previous month.

Services Support Growth

The headline expansion was propelled entirely by the services sector, which registered a 0.3% increase in output. Professional, scientific, and technical operations led the upward momentum, with scientific research, development, and advertising showing notable strength. Additional gains materialized in administrative, support, and healthcare services. However, broader macroeconomic weakness capped the headline advance, as industrial production slid 0.5% and construction contracted by 0.8%, highlighting an uneven, services-reliant recovery.

Solid Yearly Track

In the three months leading to May, the economy advanced by 0.7%, marking its sixth consecutive period of rolling quarterly growth. Within this timeframe, construction expanded by 1.6%, services rose by 0.7%, and production ticked up by 0.1%.

On an annual basis, UK GDP expanded by 1.3%. While this fell marginally short of the 1.4% forecast, it represents the strongest annual growth rate since July 2025 and marks an acceleration from April's downwardly revised 1.1% print.

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