UK GDP Shrinks Unexpectedly In May

(RTTNews) - The UK economy shrank unexpectedly in May on a sharp fall in industrial output, data from the Office for National Statistics revealed on Friday.

Gross domestic product fell 0.1 percent in May, following a 0.3 percent drop in April. GDP was forecast to grow 0.1 percent. Moreover, GDP contracted for the second straight month.

Among three main sectors, industrial production was the largest contributor to the monthly GDP fall, which was down 0.9 percent. Construction output fell 0.6 percent. These declines were partially offset by an increase of 0.1 percent in services output.

In the three months to May, real GDP grew 0.5 percent compared with the previous three months. GDP expanded 0.7 percent in May from the previous year.

Another data from the ONS showed that the visible trade deficit narrowed to GBP 21.7 billion in May from GBP 22.4 billion in the previous month. At the same time, the surplus on services trade increased to GBP 15.99 billion from GBP 15.9 billion a month ago.

As a result, the total trade balance showed a deficit of GBP 5.7 billion, which was below April's GBP 6.5 billion deficit.