Summary of UK's GDP Decline in May 2025
Economic Overview
On July 11, 2025, it was reported that the UK's Gross Domestic Product (GDP) fell unexpectedly in May, with a month-over-month decline of 0.1%. This was contrary to market expectations, which had forecasted a growth of 0.1%. The previous month's GDP was reported at a decline of 0.3%.
Year-over-Year Performance
In terms of year-over-year performance, the GDP growth remained at 0.7%, aligning with forecasts but down from the previous year's growth of 1.1%.
Industrial Production Data
Alongside the GDP data, the industrial production figures for May also showed a downturn. The month-over-month industrial production fell by 0.9%, significantly worse than the forecasted decline of 0.1%. Year-over-year, industrial production decreased by 0.3%, compared to a forecasted growth of 0.1%.
Market Reaction
The weaker economic data has led to a pullback in the British pound (GBP). The GBP/USD currency pair has been declining and is currently testing local lows from previous sessions. Analysts suggest that this area represents the lower boundary of a descending trend channel, and a break below this support level could lead to further declines towards the next support level at 1.34.