UK economy grows in May following contraction: ONS-Xinhua

UK economy grows in May following contraction: ONS

Source: Xinhua| 2022-07-13 22:58:29|Editor: huaxia

LONDON, July 13 (Xinhua) -- The United Kingdom's (UK) gross domestic product (GDP) grew by 0.5 percent in May after a decline of 0.2 percent in April, the Office for National Statistics (ONS) said here on Wednesday.

Services output grew by 0.4 percent in May, with production up by 0.9 percent and construction by 1.5 percent. UK GDP increased by 0.4 percent in the three months to May and by 3.5 percent in the 12 months to May.

The economy rebounded in May with growth across all main sectors, and health was the biggest driver with many more people seeing general practitioners despite test and trace and the vaccination programs winding down, according to Darren Morgan, ONS director of economic statistics.

Road haulers also had a busy month, and travel agencies fared well with pent-up demand for the summer holidays, Morgan added.

Manufacturing rose by 1.4 percent in May. Morgan said there was brisk growth across manufacturing after several tough months. Construction also fared well with housebuilding and office refurbishment driving growth.

Shrinking economy in April and persistent high inflation have raised concerns about recession, and the latest figures, though positive, were considered not strong enough to rule out the possibility.

"The recent resilience of GDP to the drag from the high rate of inflation probably won't last and there is still a big risk that the economy falls into recession," said Paul Dales, chief UK economist at the London-based consultancy Capital Economics.

With real household disposable incomes set to fall further in the third quarter (Q3), "a recession is still a real risk," Dales added.

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