The UK’s economy is expected to have been stagnant for another month as some industries come under pressure and the Iran war continues to hold back growth. The Office for National Statistics (ONS) will publish May’s gross domestic product (GDP) figures on Thursday following a period of global turbulence during the US-Israel’s war with Iran. Some economists are expecting GDP to have flatlined or declined in May, after slipping by 0.1% in April. The most recent data showed a sharp pullback from growth of 0.3% in March and 0.4% in February, and marked the first contraction since August last year. That decline was led by a fall in GDP for the services industry – the most dominant in the UK economy – and offsetting growth in the construction and manufacturing industries. Surging fuel and energy costs were squeezing some businesses and households in April and remained elevated in May, although wholesale prices have come down in more recent weeks.
UK economy likely to remain stagnant
Published on: July 13, 2026 3:19 PM