India, July 16 -- The UK economy expanded at a marginal pace in May as the service sector provided momentum but renewed tensions in the Middle East threaten the outlook.

Gross domestic product grew unexpectedly by 0.1 percent, offsetting a 0.1 percent fall in April, which was the first drop since October 2025, the Office for National Statistics reported Thursday. GDP was forecast to remain flat in May.

The monthly growth was driven by a rebound in the services output. Partially offsetting the gain, industrial and construction output contracted from April.

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