The UK economy appeared to be struggling to pick up pace even before today's inconclusive election result, with industrial output rising less than expected in April after a poor start to 2017.
The combination of a lack of economic momentum and the heightened uncertainty about how Prime Minister Theresa May can advance her plans for Brexit might prompt her new government to relax its grip on spending, analysts said.
UK industrial output rose 0.2% on the month in April after falling for three months.
It was much weaker than a forecast 0.8%, and over a three-month period it contracted for the first time since November, the Office for National Statistics said today.
Manufacturing, which is part of overall industrial output, also saw output rise 0.2% in April, compared with a forecast of 0.9% in the Reuters poll.
The UK construction sector was much weaker than expected too.
After last year's shock decision by voters to pull Britain out of the European Union, Britain is now facing more political upheaval after May's unexpected failure to win a parliamentary majority.
Britain's economy slowed sharply in the first three months of 2017, making it the worst performer among the Group of Seven nations after outpacing its peers in 2016, despite the shock of the Brexit vote.
As well as rising inflation and slow wage growth weighing on consumers, the economy now has to contend with heightened political uncertainty about Britain's ability to proceed with its plan to leave the European Union.
Britain's economy grew by a below-par 0.2% in the three months to May, the National Institute of Economic and Social Research, a think tank, said today.
Investors are watching closely to see if May responds to the increase in support for the opposition Labour Party by relaxing her grip on public spending, something which would boost the economy.
Analysts said that if the UK government failed to boost the economy, the Bank of England might resort to reviving its massive bond-buying programme again.
The Bank of England said before the election that it expected some of the impact of slower consumer spending would be eased by stronger exports driven by the pound's fall since the Brexit vote last year.
ONS data showed today that Britain's goods trade deficit narrowed by more than expected to £10.4 billion ($13.2 billion) in April.
But the smaller deficit was due to a sharp fall in goods imports with volumes in monthly terms down more than 5% in April, almost reversing a surge in March. Exports edged down.
Over the three months to April, goods exports rose 2.1% while imports were flat.
But the ONS said there was no sign yet that exporters were taking advantage of sterling's weakness to cut their foreign-currency prices and strengthen their competitive advantage.
The ONS also said today that construction output in April fell by 1.6% from March and was down 0.6% on the year.
A Reuters poll had pointed to growth of 0.3% on the month but a fall of 0.4% compared with April last year.
