he british economy grew faster than expected in May at 0.5 percent, officially GDP numbers reveal today.
The output was boosted by a large increase in health service activity as patients rushed to book appointments with NHS GPs following the lifting of Covid restrictions.
It pushed manufacturing in the dominant services sector by 0.4 percent. However, output in “consumer-facing” services declined 0.1 percent, driven by a 0.5 percent decline in retail.
According to the Office for National Statistics (ONS), manufacturing grew 0.9 percent and construction grew 1.5 percent.
Economists had expected production to have been flat in May. Total monthly GDP is now estimated to be 1.7 percent above pre-covid levels.
Chancellor Nadhim Zahawi said: “It’s always great to see the economy growing, but I’m not complacent. I know people are concerned, so we continue to support families and economic growth.”
But Shadow Chancellor Rachel Reeves said: “This shows that growth is still far too slow, while we urgently need to get our economy back on track.”
Despite faster-than-expected growth, data will do little to allay fears that the economy is heading for a recession later in the year
Most City economists believe the economy will likely contract in the second quarter, but grow slightly in the third quarter. However, many fear a recession in the autumn and winter after average energy bills rise to £3,000 in October and possibly even £3,300 in the new year.
GDP grew just 0.8 percent in the first quarter of the year, after a strong start in January as the economy recovered from the impact of the Omicron variant of the virus