Monthly real gross domestic product (GDP) is estimated to have fallen by 0.1% in May 2025, following an unrevised fall of 0.3% in April 2025, according to the Office for National Statistics (ONS).
Services grew by 0.1%, while production and construction both fell – by 0.9% and 0.6% respectively.
On the plus side, real GDP is estimated to have grown by 0.5% in the three months to May 2025 compared with the three months to February 2025, largely driven by growth in the services sector in this period. This reflected growth earlier in the year that resulted, in part, from some activity being brought forward to February 2025 and March 2025.
There was growth in all three main sectors in the three months to May 2025. This included a rise of 0.4% in services sector output, which was the main contributor to the increase in GDP. Production and construction output grew by 0.2% and 1.2% respectively.
Kevin Brown, savings expert at Scottish Friendly, said: “After a weak showing in April, this month’s GDP data is another bitter pill for the Chancellor. The UK’s finances were already showing real strain, and this leaves the Chancellor with more holes to fill. It is the fiscal equivalent of whack-a-mole – every time Rachel Reeves solves one problem, another emerges.
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“Real challenges lie ahead. The government’s failure to push through welfare cuts has blown a hole in its budget, likely to be filled by tax rises in the autumn. While there remains considerable speculation on what those tax rises might be, they could slow UK economic growth even further.
“The UK economy also continues to struggle with a lack of confidence. While many households have more disposable income thanks to wage increases that have outpaced inflation, large numbers remain hesitant to spend. A more optimistic take is that the UK still has the capacity to turn its fortunes around. It just needs a period of stability, but that has proved elusive.”
