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LONDON DAILY ARCHIVE

UK Economy Shrinks Unexpectedly in May

Fresh setback raises concerns about fragile recovery

12 July 2025 · 23:52 UTC

The UK economy posted an unexpected contraction in May, dealing a blow to government hopes of sustained growth.

Analysts warn the decline highlights underlying weakness in consumer spending and investment, and could increase calls for fiscal stimulus or Bank of England rate cuts to support the recovery.