‘Cause for concern but not panic’ — UK economy shrinks by 0.1% in May as bank holidays hit GDP

Fears of a recession this year continue to loom over the UK economy, as official figures today revealed the UK economy shrank by 0.1 per cent in May.

However, the extra bank holiday for the King’s coronation meant a decline in GDP was widely expected, with the figures announced by the ONS today being better than the 0.3 per cent contraction economists projected. Paul Dales, chief UK economist at Capital Economics, said that if the impact of the coronation was similar to the Queen’s funeral, then GDP might have grown by 0.2% if not for the extra day off.