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

Business

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.

Products You May Like

Articles You May Like

Jason Aldean’s Stripped-Back “Should’ve Been A Cowboy” Tribute To Toby Keith Was The Surprise Highlight Of The ACM Awards
Top 5 Are Revealed – Who Will Win? (VIDEOS)
Inflation ETF may be in a sweet spot even if Fed cuts rates
FBI Seizes BreachForums Again, Urges Users to Report Criminal Activity
EV startups Rivian, Lucid, Nikola attempt to shore up cash