UK economy returns to growth with 0.1% GDP rise in May

Britain’s economy edged back into growth in May, but the 0.1% rise was small enough to leave the broader picture looking fragile. The Office for National Statistics said gross domestic product expanded after a 0.1% contraction in April, with services up 0.3% even as production and construction both slipped.

The monthly estimate, published at 7:00am on 16 July 2026, showed that the rebound was concentrated in one part of the economy. Within services, professional, scientific and technical activities made the largest positive contribution, helped by scientific research and development and advertising services. ONS director of economic statistics Liz McKeown said the May increase came from services alone, with production and construction falling back.

The three-month measure told a steadier story. GDP rose 0.7% in the three months to May, the sixth consecutive three-month period of growth, although that was down from an upwardly revised 0.8% in the three months to April. The May monthly figure matched the median forecast in a Reuters poll of economists, suggesting the data surprised neither optimists nor sceptics, but it also did little to settle the question of whether the recovery has real momentum.

For households and businesses, the detail mattered more than the headline number. A gain of 0.1% is too slight to signal a broad-based improvement in demand, especially when industrial production and construction both contracted in the same month. The pattern points to an economy that is still being carried by parts of the service sector while heavier, more cyclical industries remain uneven. That kind of split recovery usually leaves pay growth, investment decisions and day-to-day confidence feeling weaker than the quarterly figures imply.

For policymakers in London, the numbers offered evidence that the economy had returned to growth, but not enough to suggest a clean break from stagnation. The quarterly trend was still positive, yet the slower pace compared with April and the weakness in production and construction underscored how easily momentum could fade. A 0.1% monthly rise may mark an end to contraction, but it does not yet look like the start of a stronger upswing.