The UK economy grew faster than expected in May as more shoppers returned to high streets and construction work recovered, official data showed.
Britain’s gross domestic product rose by 0.4 percent in May, the Office for National Statistics said, beating expectations of 0.2 percent growth.
This comes after no growth was recorded in April, with wet weather hitting consumer spending. Liz McQueen, director of economic statistics at the ONS, said: “The economy grew strongly in May, with all major sectors seeing increases.
“Many retailers and wholesalers had a good month, recovering from a weak April. The construction sector also grew at its fastest rate in nearly a year after recent weakness, with housing and infrastructure projects helping to boost the industry.”
In April, GDP was flat after rising 0.4% month-on-month in March due to wet weather, according to the Office for National Statistics.
The services sector was the main driver of growth, with rapid expansion in the information and technology sector and the professional and scientific sectors.
Between January and March, the UK’s GDP grew by 0.7%. This growth saw the UK economy rebound from recession in the second half of 2023.
In June, inflation also fell to the 2% target for the first time in nearly three years. Figures from the Office for National Statistics show the consumer price index fell to 2% in May, down from 2.3% in April.
The new figure marks the first time inflation has hit the Bank of England’s target since July 2021, before the cost of living crisis sent inflation soaring – at one point reaching levels not seen for 40 years.
In the first week since Labor’s landslide election victory, Finance Minister Rachel Reeves promised to restart the economy by making it the new government’s “national mission” to secure the highest sustainable growth rate in the G7.
“Achieving economic growth is our national mission, and we do not have a minute to waste,” Ms. Reeves said.
“That is why this week I have already taken the urgent action needed to repair the foundations of our economy, to rebuild Britain and make every part of Britain better off. A decade of national renewal has begun, and we are only just beginning.”