The UK economy is expected to remain stagnant for another month, with industries under pressure and geopolitical tensions hampering growth.
The Office for National Statistics (ONS) will publish gross domestic product (GDP) figures for May on Thursday.
Economists widely anticipate that GDP will stagnate or decline in May, following a 0.1 percent drop in April. This marked a sharp decline from growth of 0.3 percent in March and 0.4 percent in February, the first contraction since last August.
April's decline was led by a decline in the dominant services industry, despite offsetting growth in construction and manufacturing. Rising fuel and energy costs put pressure on businesses and households during April and May, although wholesale prices have fallen recently.
Chancellor Rachel Reeves commented on the impact, stating that “it was not a war we wanted or joined, but one that will have an impact at home.”
Pantheon Macroeconomics said it was forecasting another weak performance for the services industry, but a more mixed picture across the economy, with subsectors such as energy supply boosted by higher oil prices.
Its analysts expect GDP to have shown no growth in May.
Deutsche Bank said it expected GDP to have declined 0.1 percent in May on a more pessimistic outlook for the economy.
Its chief UK economist, Sanjay Raja, predicted that services activity remained “sluggish” in May, including information, professional and financial services, and real estate.
However, Raja said it was “not all bad news” for the economy, adding: “Anecdotally, retailers pointed to a combination of promotions and warmer weather that boosted demand for items such as outdoor furniture and fans.”
Looking ahead, he also suggested some sectors could receive a boost this month as England have gone further in the FIFA World Cup and some pubs and bars have benefited from extended opening hours and busier periods.
Ms Reeves, speaking to the BBC's Sunday With Laura Kuenssberg program in what could be one of her last major interviews as Chancellor, acknowledged the public was “impatient for change” when asked why Sir Keir's ministry was being toppled in a Labor leadership contest.
She said: “I'm eager for change and I totally understand that people want to see their lives change faster, and that will be Andy Burnham's job when she becomes prime minister of our country in just over a week.
“But he will become prime minister thanks to the majority we got.
“I also know that, thanks to the work I have done, Andy will take charge of a much stronger economy than the one I inherited from the Conservatives just two years ago.”
