UK economy continues to grow despite recent slowdown
New data from the Office for National Statistics (ONS) shows that UK GDP (gross domestic product) grew 0. 7% in the three months to May 2026, marking a slowdown from growth of 0. 8% in the three months to April.
New data from the Office for National Statistics (ONS) shows that UK GDP (gross domestic product) grew 0. 7% in the three months to May 2026, marking a slowdown from growth of 0. 8% in the three months to April. The continued growth was driven by a 0. 7% increase in the services sector, alongside a 1. 6% rise in construction and a 0. 1% increase in production. The services sector was the largest contributor to growth over the period, with consumer-facing services output increasing by 0. 5%. The strongest positive contributions included wholesale and retail trade, which is also grouped with the repair of motor vehicles and motorcycles, growing by 1. 3%. However, some areas of the economy continued to decline, with food and beverage service falling by 0. 9% and travel agency, tour operator and other reservation service activities dropping 2. 8%. Monthly GDP also grew in May, increasing by 0. 1% after a 0. 1% fall in April. The monthly rise was supported by a 0. 3% climb in services output, although this was partially offset by falls in production declining by 0. 5%, and construction dropping by 0. 8%. The latest figures mark the sixth consecutive period of three-month on three-month growth, with the UK economy expanding by 1. 1% in the three months to May 2026 compared with the same period a year earlier. Liz McKeown, director of economic statistics at the ONS, said: “The economy recorded robust growth in the last three months to May, though the pace eased slightly as the latest two months showed a weaker picture. “Services drove growth across the three months with computer programming and advertising again leading the way, while the often-volatile pharmaceutical industry also performed well. “This was only partially offset by another weak period for power generation while architectural and engineering firms also contracted. “While all three main sectors grew over the three months, the slight growth in GDP in May was driven by services alone, with production and construction both falling back. ”