By Kevin Schofield
Britain’s Chancellor of the Exchequer Rachel Reeves attends a plenary at the UK-France Summit in Downing Street, London Thursday, July 10, 2025. (Yui Mok/Pool Photo via AP)Rachel Reeves has been dealt another blow after the UK economy unexpectedly shrank in May.
Economists had expected gross domestic product (GDP) to bounce bank after it contracted in April.
However, the Office for National Statistics has revealed that GDP actually shrunk again, by 0.1%, in May.
Reeves said: 鈥淕etting more money in people鈥檚 pockets is my number one mission. While today鈥檚 figures are disappointing, I am determined to kickstart economic growth and deliver on that promise.鈥
But despite the chancellor鈥檚 warm words, David Morrison, senior market analyst at financial services provider Trade Nation, warned that even worse could be yet to come.聽
He said: 鈥淵et again, this is another poor piece of UK economic data which can only add to chancellor Rachel Reeves鈥檚 woes.
鈥淏ut it will be next month鈥檚 quarterly growth lookback, which w