According to the latest official statistics, the UK economy exceeded expectations in May as demand for medical services and holidays offset inflationary pressures on store spending.
GDP increased by 0.5% in May and recovered from a 0.2% decrease in April, according to new data from the National Bureau of Statistics (ONS).
Darren Morgan, director of economic statistics at ONS, said the economy recovered in May and grew in all major sectors.
Health was the greatest driving force, he said, as more people went to see their doctors.
Demand for the travel sector was sluggish during the summer vacation, and sales were favorable. According to ONS, output in the travel agency and tour operator industry surged 11% in May.
“A few months later, there was widespread growth in the manufacturing industry as a whole, but construction also went well, driven by housing construction and office refurbishment,” Morgan added.
Inflationary pressure
Despite the rebound, inflation is 9.1%, so there are concerns that consumer spending may fall as households tighten their belts, potentially putting the UK in recession.
Prime Minister Nadim Zahawi said it was “great” to see the economy grow, but he said he was “not complacent.”
“I know people are worried, so we continue to support family and economic growth,” he said.
“We are working with the Bank of England to curb inflation and we are confident that we can create a stronger economy for everyone in the UK.”
Darren Morgan of ONS also warned of excessive optimism.
Regarding BBC Radio 4’s “Today” program, he said: Of the goods and services they sell. Many companies have not actually inherited the price increases they are experiencing and expect those price increases to continue. “
According to Morgan, 9 out of 10 people are aware that their living expenses continue to increase.
Ben Jones, lead economist at the Confederation of British Industry (CBI), warned about the volatility of current GDP data.
He states: “This is partly due to the impact of Jubilee Bank’s holidays, and this noise will continue to obscure the true state of the economy over the next few months. In fact, CBI research and real-time data are curtailed. It shows the momentum of the economy. “
“The next prime minister’s priority must be to grow the economy again,” he said.
PA Media contributed to this report.
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