London — Britain’s economy has struggled to gain momentum after a slow start to 2017, according to data published on Friday, which raised questions about the chances of the Bank of England raising interest rates this year. Output by British factories and the construction sector unexpectedly shrank in May, on top of weak spending by consumers who are feeling the pinch from accelerating inflation since 2016’s vote to exit the EU. The signs of continued weak growth came as businesses pressed British Prime Minister Theresa May and her government to negotiate a smooth Brexit in two years’ time, saying an abrupt departure would deter investment. On Thursday, an employers group said that Britain should stay in the EU’s single market for a transition period. Executives from leading British companies were due to meet Brexit minister David Davis on Friday. Sterling dipped below $1.29 after Friday’s data and hit its lowest level since June 28. British government bond prices rose. Analysts said...
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