Britain's economy barely moved in May despite services holding it up.
0.1% growth masks the drag from persistent energy costs and Middle East tensions.
Britain's economy is running on fumes. A 0.1% expansion in May reveals an economy treading water, not one gathering momentum, and that tepid growth arrived only because services firms kept activity afloat.
The contrast is stark. Most sectors should be rebounding by now. Instead, the UK is clinging to positive numbers while two major drags persist: energy costs that remain elevated and fallout from the Iran war creating unpredictable global conditions.
Services drove the May expansion, according to BBC and Reuters reports. Without that sector's resilience, the headline would have been flat or negative. Manufacturing and other industries, meanwhile, appear to be surrendering ground under the combined weight of expensive energy and geopolitical uncertainty that makes long-term planning hazardous.
High energy costs continue to weigh on activity across the broader economy. Firms and households face persistent cost pressures that suppress demand and constrain investment. The Iran war's impact compounds this burden, introducing supply-chain risk and keeping energy traders on edge, precisely the conditions that extend the damage long after a conflict announcement fades from headlines.
Britain is not in recession, but it is in a holding pattern. A 0.1% monthly gain leaves no room for error; the margin between stagnation and contraction has collapsed. Until either energy costs ease or geopolitical tensions clear, the economy will remain hostage to forces beyond domestic policymakers' control.
