The UK economy grew faster than expected in May as it bounced back from wet weather the month before, according to official figures.
The Office for National Statistics (ONS) recorded gross domestic product (GDP) growth of 0.4% in the month, following zero growth in April when wet weather hit consumer spending. City economists had forecast growth of 0.2%.
The expansion was led by the services sector, which grew 0.3%. Production rose 0.2% while construction rose 1.9% after recovering from a rainy April.
Director of economic statistics at the ONS Liz McKeown said: “The economy grew strongly in May, with all the main sectors seeing increases.
“Many retailers and wholesalers had a good month, with both bouncing back from a weak April.
“Construction grew at its fastest rate in almost a year after recent weakness, with housebuilding and infrastructure projects boosting the industry.”
On a quarterly basis, the UK economy expanded by 0.9% in the three months to May compared to the three months to February, driven by a 1.1% rise in services output.
Chancellor Rachel Reeves said: “Delivering economic growth is our national mission, and we don’t have a minute to waste. That is why this week I have already taken the urgent action necessary to fix the foundations of our economy to rebuild Britain and make every part of Britain better off. A decade of national renewal has begun, and we are just getting started.”
The new Labour government has prioritised securing economic growth, with measures to date including the creation of a national wealth fund.
George Roberts, head of dealing at global financial services firm Ebury, said: “This morning’s GDP data will put a spring in Sir Kier Starmer’s step as he continues his whistle-stop tour around Europe and the US.
“With Labour’s victory in the polls quelling market fears, inflation back down to target, and the new administration signalling closer ties with the EU, UK businesses will likely be feeling optimistic about the future.”
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