Business

King’s coronation weighs on economy as output contracts by 0.1% in May

The economy contracted in May as the additional public holiday for the King’s coronation weighed on output, according to official figures.

Data from the Office for National Statistics (ONS) showed negative growth of 0.1% during the month, better than economists had predicted but continuing the yo-yo pattern seen throughout the last year that has left gross domestic product flat on a quarterly basis.

The economy is back at risk of recession as the Bank of England bears down harder on stubborn inflation and the government has said it would welcome that prospect if it means the problem can be brought under control.

The pace of price rises has remained sticky in the UK due to elements of the energy-led cost of living crisis proving more drawn out than expected while the Bank has also pointed to so-called secondary effects.

These include a record pace for wage growth and a suggestion that companies are rebuilding profits by charging more than they should.

Articles You May Like

Perplexity AI makes a bid to merge with TikTok U.S.
Online conspiracy theories could become a threat to Starmer’s government
69-Year-Old Man with Paralysis Flies Virtual Drone Using Brain Implant
MPs sceptical if new Office for Value for Money is value for money
Scale AI CEO says China has quickly caught the U.S. with the DeepSeek open-source model