UK economy rebounded in May

The UK economy returned to growth in May after shrinking in April and March.

Figures from the Office for National Statistics (ONS) show that GDP increased by 0.5% in May, with growth across all main sectors.

Growth in manufacturing and construction and an increase in GP appointments helped to boost the economy, the ONS said.

“Health was the biggest driver with many more people seeing GPs, despite Test and Trace and the vaccination programmes winding down,” said Darren Morgan, director of economic statistics at the ONS. “Road hauliers also had a busy month, while travel agencies fared well with pent up demand for summer holidays.

“There was widespread growth across manufacturing after several tough months, while construction also fared well with housebuilding and office refurbishment driving growth.”

Across various industries, businesses reported that higher running costs had led them to put up prices for customers. Many cited the cost of fuel and electricity, while others mentioned price increases in nickel, cobalt, aluminium, steel, paper, fish and cooking oil.

UK inflation rose to 9.1% in May and is expected to exceed 10% later this year.

Andrew Bailey, the governor of the Bank of England, has pledged to bring inflation back down to its target of 2%, “no ifs or buts”.