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LONDON DAILY ARCHIVE

UK Economy Contracts for Second Month, Raising Concerns

GDP fell 0.1% in May, defying hopes for a slight rebound

12 July 2025 · 00:43 UTC

The UK economy shrank for the second consecutive month in May, with official figures showing a 0.1% decline in GDP, missing forecasts for modest growth.

Economists warn the contraction adds pressure on the Bank of England and the government to stimulate the economy amid persistent cost-of-living challenges and rising borrowing costs.