“These downbeat figures undoubtedly increase anxiety over the health of the UK economy, with tumbling construction and manufacturing activity causing a disheartening decline in overall output.
“May’s downbeat outturn means a contraction in GDP across the second quarter looks a racing certainty, as sinking business confidence amid intensifying geopolitical turmoil will have dampened growth in June, despite a boost from the warm weather.
“The UK’s growth trajectory in the near term is likely to tilt downwards as any uplift from higher consumer and government spending is hampered by escalating business caution, amid fears of further tax rises in this Autumn’s Budget.
“The lack of momentum in the UK economy indicated by these sluggish figures means that an August interest rate cut currently looks inevitable, despite the recent spike in inflation.”
ENDS
Notes to editors:
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