The UK economy shrank unexpectedly in May, according to latest official figures, contracting for the second month in a row.
The economy shrank by 0.1%, the Office for National Statistics said, confounding analysts who expected to see slight growth.
The figure will be seen as a blow to Chancellor Rachel Reeves, with the government having made boosting economic growth a key priority.
The fall in economic output was mainly driven by a drop in manufacturing, the ONS said, while retail sales were “very weak”.
Oil and gas extraction was down, while car-making and the “often erratic” pharmaceutical industry were weaker.
The services sector grew overall in May, with legal firms recovering from the impact of changes to stamp duty thresholds the previous month.
Although the economic output figure for the month was down, the economy grew 0.5% in the three months to May.
Ben Jones, lead economist at the CBI business group, said the weak figure for May “highlights the ongoing pressures facing the UK economy, with manufacturing and retail struggling, alongside a patchy performance across other parts of the services sector”.
