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.

Articles You May Like

Fever’s Clark joins Cincinnati NWSL expansion bid
FTX co-founder Gary Wang avoids prison time for role in crypto fraud
AI Technology Detects Cancerous Brain Tumours in 10 Seconds During Surgery
Google could be forced to sell its Chrome browser
Ukraine says strike using UK-made Storm Shadow missiles ‘very successful’ as Russian air attacks intensify