| Consensus | Consensus Range | Actual | Previous | Revised | |
| Month over Month | 0.1% | 0.1% to 0.1% | 0.1% | -0.1% | |
| 3-Months over 3-Months | 0.7% | 0.7% | 0.8% |
Highlights
The UK economy returned to modest growth in May 2026, with monthly GDP expanding by 0.1 percent after a 0.1 percent contraction in April, indicating continued resilience despite weakening industrial activity. The recovery was driven entirely by the services sector, which grew by 0.3 percent, reinforcing its role as the principal engine of economic growth. However, this gain was partially offset by contractions in production (minus 0.5 percent) and construction (minus 0.8 percent), highlighting uneven sectoral performance.
The broader picture remains relatively encouraging. Over the three months to May 2026, real GDP increased by 0.7 percent, only marginally below the revised 0.8 percent growth recorded in the previous three-month period. Services continued to underpin economic expansion with 0.7 percent growth, while production maintained a modest 0.1 percent increase despite monthly volatility. Construction remained the strongest-performing sector, recording 1.6 percent growth over the three-month period, reflecting sustained infrastructure and building activity.
In summary, the data suggest that the UK economy remains on a positive, albeit subdued, growth trajectory. Strong domestic demand for services and continued resilience in construction are helping to offset persistent weaknesses in production, although sustained improvements in industrial output will be essential to broaden the recovery and strengthen long-term economic growth. Thee latest updates take the RPI to minus 22 and the RPI-P to minus 9, meaning that economic activities are now behind market expectations in the UK.
Market Consensus Before Announcement
A very modest 0.1 percent increase is the call after a decrease of 0.1 percent in the previous month.
Definition
Gross domestic product (GDP) is the broadest measure of aggregate economic activity and encompasses every sector of the economy.
Description
GDP covers all aspects of economic activity. Investors need to closely track the economy because it usually dictates how investments will perform. Stock market investors like to see healthy economic growth because robust business activity translates to higher corporate profits. GDP contains a treasure-trove of information which not only paints an image of the overall economy, but tells investors about important trends within the big picture. However, the monthly report is quite limited and only provides data on the main output sectors. More detailed information is available in the quarterly reports.