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Consumers and businesses are grappling with higher costs – London Business News | London Wallet

Philip Roth by Philip Roth
July 11, 2025
in UK
Consumers and businesses are grappling with higher costs – London Business News | London Wallet
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The UK economy continued to underwhelm in May, shrinking for a second consecutive month.

Drivers of the contraction were similar to those cited in April. On the consumer side, heightened inflation has impacted discretionary spending power, contributing to a sharp decline in consumer-facing services output.

Meanwhile, businesses contended with elevated employment costs, following the implementation of several policy changes at the beginning of the new financial year.

Uncertainty from tariffs will have also affected output, particularly in the manufacturing sector.

The latest data support Cebr’s view that growth across Q2 will have been much slower than the previous quarter.



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