After experiencing zero growth in April due to rainy weather that discouraged consumers and slowed down construction projects, the economy grew by 0.4% in May.
According to the Office for National Statistics (ONS), house construction and infrastructure projects drove May’s construction industry growth, which was the strongest in almost a year.
Analysts stated that the decision on whether interest rates will be lowered next month was “knife-edge” in light of the new data and recent remarks made by Bank of England policymakers.
The growth rate for May was twice as high as predicted. Several retailers and wholesalers “had a good month, with both,” according to Liz McKeown of the ONS.
The services sector, which dominates the UK economy and covers businesses such as shops, bars and restaurants, grew by 0.3% in May, while the construction sector jumped by 1.9%.
The question of how to increase growth in the UK’s economy was one of the key battlegrounds in the recent general election.
Responding to the latest growth figures, Chancellor Rachel Reeves said economic growth was the government’s “national mission,” and “that is why this week I have already taken the urgent action necessary to fix the foundations of our economy.”.
On Monday, Ms. Reeves said housebuilding targets would be reintroduced, planning restrictions would be overhauled, and there would be an end to the effective ban on onshore wind farms in England.
