UK economy: May GDP dips 0.1% for second straight month; BoE rate...

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UK economy: May GDP dips 0.1% for second straight month; BoE rate cut likely amid fiscal pressure

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25

Britain's economy faces a setback. GDP declined for the second month in May. This surprises economists who expected growth. Industrial output and construction declined. The Bank of England may cut interest rates. The Labour government needs to boost growth. Finance Minister Rachel Reeves acknowledges disappointment. The economy had a strong first quarter but temporary factors drove it.

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