UK Economy Shrinks Like a Misty Muffin
In May, the UK economy decided to keep the trend on the down‑slide, shrinking for a second month in a row.
What’s Feeding the Fall?
- Inflation’s Bite: Prices have been climbing higher than the price of a fancy coffee, so folks are tightening their wallets. That’s squeezing out discretionary spending on cafés, concerts, and those fancy brunches.
- Businesses Feeling the Burn: The new fiscal year kicked off with a handful of policy changes, inflating employment costs. Even the hard‑working employees are feeling the heat!
- Tariff Turbulence: Uncertainty around trade tariffs is messing with the manufacturing scene, creating a wobble that ripples through output.
Why the Slowdown Is Real
The recent figures line up with Cebr’s forecasting: the second quarter is expected to grow slower than the first. In lay terms, the economic engine is still idling, not revving up for a sprint.
In a Nutshell
The UK’s economy isn’t taking a break; it’s still shrinking, and we’re all watching the next data release to see if the dust settles or starts a new trend.
