Rachel Reeves disappointed after economy shrinks

Chancellor Rachel Reeves has called the economy’s recent performance “disappointing” after figures showed it shrank unexpectedly in May.

The economy contracted by 0.1%, the Office for National Statistics (ONS) said, after also shrinking in April.

The fall in economic output, which confounded analysts who had expected to see slight growth, was mainly driven by a drop in manufacturing, the ONS said, while retail sales were “very weak”.

The weaker than expected figure adds pressure on the government which has made boosting economic growth a key priority.

The government has put a lot of emphasis on the UK being the fastest growing economy in the major G7 countries, with 0.7% growth in the first three months of the year outpacing that of Canada,…