The UK economy expanded by more than expected in May, following zero growth in April, according to the latest official data.
Gross domestic product (GDP) grew by 0.4%, above economists’ expectations of a 0.2% increase, as an improvement in the weather boosted consumer spending and construction work.
The services sector, which dominates the economy, showed growth of 0.3% and production was up 0.2%, the Office for National Statistics (ONS) said. Construction grew by 1.9%, the fastest rate in almost a year, with house building and infrastructure projects boosting the industry.
In the three months to May the economy grew by 0.9% compared with the previous three months, which the ONS said was the quickest pace for more than two years.
“The warmest May on record helped stoke a stronger-than-expected recovery in GDP growth, driving activity in consumer-facing sectors like retail as well as supporting construction activity,” commented Anna Leach, chief economist at the Institute of Directors.
“It’s good to see manufacturing picking up as well, meaning that all the main sectors contributed to growth.
“Growth is expected to be supported this year by improving real incomes and a strong labour market, with lower interest rates further out likely to support lending and business investment.”
