The UK economy shrank in May amid ongoing public sector strikes and the extra bank holiday to celebrate the Coronation of King Charles.
The Office for National Statistics (ONS) said the monthly contraction of 0.1pc followed growth of 0.2pc in April.
However, this was better than the 0.3pc decline expected by analysts as families used the additional bank holiday to spend on concerts, museum trips and other recreational activities.
This means growth across the three months to May was flat. Darren Morgan, director of economic statistics at the ONS, said there were further signs that the jobs market was cooling, with employment agencies seeing “another poor month”.
He said manufacturing, energy generation and construction all saw declines, “with some industries impacted by one fewer working day than normal”.
He added that “despite the Coronation Bank Holiday, pubs and bars saw sales fall after a strong April.”
Strike action by rail workers hit visits to bars and restaurants, the ONS said, though no industrial action by junior doctors in May compared with four days in April helped to boost output in the health sector following a big drag the previous month.
Chancellor Jeremy Hunt said inflation, which stood at 8.7pc in May, was still far too high: “While an extra Bank Holiday had an impact on growth in May, high inflation remains a drag anchor on economic growth.
“The best way to get growth going again and ease the pressure on families is to bring inflation down as quickly as possible. Our plan will work, but we must stick to it.”
