WS News
16 Jul 2026, 08:34
UK Economy Returns to Growth in May as GDP Beats Expectations
The UK economy returned to growth in May, offering fresh signs of resilience after contracting in the previous month.
Monthly GDP rose 0.1% in May, beating economists’ expectations for no growth and reversing April’s 0.1% decline. The better-than-expected reading suggests economic activity stabilized despite ongoing pressure from elevated borrowing costs and a challenging global backdrop.
The broader trend also remained constructive. The three-month-on-three-month GDP measure increased 0.7%, above the consensus forecast of 0.5%, although slightly below the previous 0.8% reading. The data indicates the UK economy continues to expand on an underlying basis despite month-to-month volatility.
The stronger-than-expected figures may ease concerns about the pace of economic growth and could influence expectations for the Bank of England’s monetary policy. While inflation has moderated in recent months, policymakers are expected to continue balancing the need to support growth against the risk of persistent price pressures.
Investors will now turn their attention to upcoming UK inflation, labor market, and retail sales data for further clues on the health of the economy and the timing of future Bank of England interest rate decisions.
The UK economy returned to growth in May, offering fresh signs of resilience after contracting in the previous month.
Monthly GDP rose 0.1% in May, beating economists’ expectations for no growth and reversing April’s 0.1% decline. The better-than-expected reading suggests economic activity stabilized despite ongoing pressure from elevated borrowing costs and a challenging global backdrop.
The broader trend also remained constructive. The three-month-on-three-month GDP measure increased 0.7%, above the consensus forecast of 0.5%, although slightly below the previous 0.8% reading. The data indicates the UK economy continues to expand on an underlying basis despite month-to-month volatility.
The stronger-than-expected figures may ease concerns about the pace of economic growth and could influence expectations for the Bank of England’s monetary policy. While inflation has moderated in recent months, policymakers are expected to continue balancing the need to support growth against the risk of persistent price pressures.
Investors will now turn their attention to upcoming UK inflation, labor market, and retail sales data for further clues on the health of the economy and the timing of future Bank of England interest rate decisions.