finance
UK Economy Grows 0.1% in May After Contracting in April
The United Kingdom's economy expanded 0.1% in May, reversing a contraction the prior month, official data showed. Growth in the three months to May reached 0.7%, led by services including computer programming and advertising. Rising oil prices tied to the Iran conflict affected some sectors.
Jul 16, 3:19 AM·1m read1 source
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The UK's economy expanded by 0.1% in May after contracting in April, the Office for National Statistics said. Growth came from the service sector and was offset by declines in production and construction. In the three months to May the economy grew 0.7% compared with the previous three-month period.
Computer programming and advertising led the way while the pharmaceutical industry also performed well, Liz McKeown, director of economic statistics at the ONS, said. The April contraction occurred as the US-Israel war with Iran began to affect businesses. Firms in manufacturing, hospitality, travel agencies and entertainment flagged the conflict as disrupting activity.
Since hostilities resumed between the US and Iran last week the price of oil rose from about $72 a barrel to $84. That level remains well below the peak of around $120 seen earlier this year. A Treasury spokesperson said the UK recorded the fastest growth in the G7 in the first quarter of 2026 and that the OECD agreed the country had restored stability.
