LONDON, July 16, 2026 (BSS/AFP) - Britain's economy rebounded slightly in May with growth of 0.1 percent thanks to expansion in the services sector, official data showed Thursday as Britain awaits a new prime minister.

Gross domestic product (GDP) had contracted by 0.1 percent in April as the US-Iran war pushed up inflation.

"The growth in May was because of a rise of 0.3-percent (output) in services," the Office for National Statistics said in a statement.

The data comes as Andy Burnham prepares to take over as prime minister on Monday. Keir Starmer resigned as PM and Labour party leader last month, bowing to months of internal pressure to step down after a series of scandals, missteps over the economy and policy U-turns.

The OECD grouping of industrialised nations on Wednesday forecast that the UK economy was expected to slow to growth of 0.9 percent this year from 1.4 percent in 2025, before GDP growth picks up to 1.1 percent next year.