FALCON POWERS – The British economy recovered significantly in May, providing an early boost for the new Labour government as it strives to revive the country’s growth prospects.
Data from the UK’s Office for National Statistics released on Thursday showed that Britain’s gross domestic product (GDP) grew by 0.4% month-on-month in May, better than expected. This was after a contraction recorded in April.
A Reuters poll of economists had pointed to a 0.2% monthly growth in GDP for May. This figure is double the economists’ forecast (0.2%), reflecting a faster expansion in the construction sector in nearly a year.
These data put Britain on track to achieve another strong quarter of growth, as the recovery continues from the recession that the Labour government aims to reinforce through a series of pro-growth policies.
The economy benefited from improved weather in May, after heavy rain in April had dampened activity in the retail and construction sectors. Previous data showed a rise in retail sales, as the UK experienced its warmest May on record, according to the Met Office.
Liz Mayhew, the ONS’s director of economic statistics, said: “Many retailers and wholesalers had a good month, with both recovering from a weak April. The construction sector also grew at its fastest rate for nearly a year after a recent weakness, as house building and infrastructure projects boosted the sector.”
