LONDON– Tuesday, July 16, 2024 – The United Kingdom’s (UK) economy defied expectations and bounced back in May, according to data released by the Office for National Statistics (ONS) on Thursday, July 11.
Following a period of stagnation in April attributed to poor weather conditions, Gross Domestic Product (GDP) grew by a stronger-than-anticipated 0.4% in May compared to April. This change passed predictions of a more modest 0.2% increase.
The ONS reported that all three main sectors of the U.K. economy contributed to the growth in May.
The services sector, which accounts for the largest share of the economy, remained the key driver with a 0.3% increase. Additionally, the construction sector saw a welcome recovery with a 1.9% rise, while production edged up by 0.2%.
However, some analysts issued a word of warning citing prevailing wet weather, which they said could affect the economy.
Retail sales also so an upward tick rebounding strongly by 2.9% after a decline in April.
In May 2024, services output expanded by 0.3%, continuing its growth from April 2024 (revised upward from 0.2%). This sector made the largest contribution to the monthly GDP growth.
Production output increased by 0.2% in May 2024, rebounding from a 0.9% decline in April 2024, while construction output surged by 1.9%, reversing a 1.1% decline in the previous month.
Comparing year-over-year, GDP grew by 1.4% in May 2024 and by 1.0% over the three months to May 2024 compared to the same periods in the previous year.
The monthly estimates are subject to revisions, as highlighted in the latest report, with detailed sectoral contributions discussed in the Office for National Statistics’ latest bulletin.
For more detailed breakdowns, refer to the official GDP monthly estimate from the Office for National Statistics here.
