“The economy rebounded in May with growth in all major sectors”
Britain’s economy rebounded in May, official data showed, brushing aside expectations that inflation would weigh on growth, although experts warned the good news may not last.
In May, gross domestic product rose 0.5%, the Office for National Statistics said in a statement, at a time when analysts had expected zero growth.
“The economy rebounded in May with growth across all major sectors,” said Darren Morgan, director of the official data body.
This strong growth was driven by a recovery in construction, manufacturing and services.
This indicator contrasts with data from April, when the economy contracted 0.2%, fueling fears of an impending recession.
The Bank of England BoE, which is the issuer, has raised its interest rates five times since December in an attempt to curb inflation, which is weighing on the purchasing power of British households.
Inflation hit a 40-year high in May, with prices rising 9.1%, putting the indicator on track to hit double-digits on rising energy prices and food, according to the BoE warned.
The UK government cautiously celebrated the data on Wednesday.
“It’s always good to see the economy growing, but we are not complacent,” Finance Minister Nadhim Zahawi said.
“I know people are worried so we will continue to support families and economic growth,” he added.
Economists had expected the economy to stagnate in May and warned that GDP could contract in June, especially given the extra holidays due to the celebration of Queen Elizabeth II’s Jubilee.
Character font: AFP
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