UK economy shrank unexpectedly in May

The British economy unexpectedly shrunk in May and made a consecutive contract for the second month.

National Statistics Office (Ones), the economy of 0.1%contract, mixing analysts waiting to see slight growth.

The government has made an increase in economic growth into a key priority, and Chancellor Rachel Reeves said that the last figure “disappointed”.

Ones said that the decrease in economic production was mainly directed with a decrease in manufacturing and that retail sales were “very weak”.

When ounces, oil and gas extraction fell, the car production and the “frequently irregular” pharmaceutical industry were weaker.

The service sector grew generally in May, and legal firms escaped the impact of changes on the previous month stamp tax thresholds.

CBI Business Group’s Chief Economist Ben Jones said the weak figure of May “It emphasizes the ongoing pressures faced by the UK economy with its irregular performance in other regions of the services sector with the struggle for manufacturing and retail “.

Reeves reacting to figures, “Today’s figures are frustrated, I am determined to start economic growth,” he said.

In the first three months of the year, the economy increased by 0.7%. During this period, when producers competed to overcome higher US import taxes, exports were increased by export, and HOMUYERS ran to complete purchases before the end of the tax reduction.

Ones said that despite the contraction in May, the economy grew by 0.5% in March-May.

Hailey Low, Institute of Economic National Economic and Social Research, shows that in April and May, the economy “remains fragile”.

Authorized, a government of a government on welfare cuts, said the financial buffer, which should cope with economic shocks, is eroded.

Following the increase in wages and taxes, the enterprises and public financing “tense” growth expectations “continue to remain silent in the medium term,” he said.

Reeves, in the autumn budget “hard exchange” faced, “to increase taxes or self -imposed rules to reduce expenditures to meet,” he added.