UK GDP unexpectedly contracted by -0.1% mom in May, missing expectations for 0.1% mom growth. The weakness was driven by a sharp -0.9% mom drop in industrial production and a -0.6% mom fall in construction output, partially offset by a modest 0.1% mom gain in services—the largest sector of the economy.
Still, broader momentum remains positive. Real GDP rose 0.5% in the three months to May, thanks to steady growth in services (+0.4%) and solid gains in construction (+1.2%). Production also rose 0.2%.
