Britain’s economy shrank for a second consecutive month in May, with gross domestic product contracting 0.1% from April, official data from the Office for National Statistics showed on Friday. The drop followed a 0.3% decline in April and wrong-footed economists, who had expected a 0.1% rebound. A 0.9% slide in industrial production and a 0.6% fall in construction outweighed a marginal 0.1% rise in services activity. Manufacturing output fell 1.0% on the month, reversing some of the front-loaded gains seen earlier in the year as firms raced to beat higher U.S. import tariffs. The back-to-back contractions deepen concern that overall output may slip in the second quarter, eroding the strong start the economy recorded in the first three months of 2025. Analysts said the weak May figures bolster expectations that the Bank of England will lower interest rates at its August meeting to support growth. Finance Minister Rachel Reeves described the data as "disappointing" but reiterated the government’s pledge to “kick-start” expansion. Economists cautioned that higher domestic taxes and lingering trade friction are clouding the outlook, leaving policymakers with limited room to avert further softening in the months ahead.