UK GDP data for May 2025.

In May, the UK economy suddenly decreased, the data showed on Friday, could not get rid of the effects of tariffs on the United States and the uncertainty of business.

Recent monthly growth figures from the National Statistics Office showed that in May they were 0.1% a month a month. Analysts surveyed by Reuters expected 0.1%extension.

The weakness was focused in production, decreased by 0.9%, and the construction that fell by 0.6%. Figures will come as a blow to finance minister Rachel Reves, which made a reboot economic growth and Reduced UK budget deficit Its main goals.

Recent data follows from a reduction of 0.3% in April, When the domestic tax were introduced and US President Donald Trump announced tariffs As by trading partners and opponents. Madness tariffs sent world markets to the tail bap and created a wide uncertainty of the business.

The UK WAS Hit with a 10% “Reciprocal Tariff” From Trump despite Having A More-Or-Less Balanced Trading Relationship with the us when it comes to the exchange of Goods, Although It Runs A Large Surge Services, According to the ONS Trade for 2024.

Since then, Britain has concluded a trade agreement with the US. However, becoming the first country that did this when the trade negotiations are ongoing for other trading partners, Including the European Union, which is still expected to sign a trade agreement with Washington.

Despite the comfort of the US trading transaction, the UK faces internal economic winds, and 0.7% in GDP (attributed to the probable load of economic activity before Trump’s trade tariff) will not be repeated in the following quarterly updates. The first grade of the second quarter GDP (Q2) is due to take place on August 14.

Instead, economists expect growth to slow in the rest of the year against the background Weak job market And constant economic uncertainty, while the Bank of England predicts unsuccessful growth by 1% in 2025.

Business Business Business says they also face the problem of national wages and national contributions introduced in April.

In Friday’s note, Suren Tira, director of the Economics of the Institute of Chartered Accountants in England and Wales, said that in August the interest rate with Boe was now “inevitable”, even with the latter with the latter Inflation posts increase above 3%.

“These figures down are undoubtedly increasing the concern about the health of the UK economy, while steaming construction and industrial activity, which led to a decrease in the total volume of results,” Tira said in the comments by email.

Over the last year, Boe reduced interest rates from 5.25% to 4.25%, implementing a slower rate than its peers in the European Central Bank, which reduced its key rate from 4% to 2% during this period. As of Friday morning, the prices for the cash market suggest approximately 80% of the reduction of August.

Bank Governor Andrew Bailey said CNBC earlier this month What “interest rates will still be -still down”, adding that it is impossible to call politics at the time.

Sanji Raja, the chief economist of Deutsche Bank, said GDP figures indicate that both Boe and his own expectations of 0.25% in the second quarter were “too strong”, noting that the rates of 0.1% were more likely.

However, he added that the economy is not “dismissed”, with indicators, including stronger home and business sentiment, healthy loan conditions and the latest indicators of the shopping executive index, which are still indicating a common rebound.

“But we will need a global production recovery to start the sector. This is a great unknown for the UK economy,” Raja said.