UK GDP: growth powers past expectations after washout April

UK GDP: growth powers past expectations after washout April
UK GDP showed 0.4% month-on-month growth in May, following no growth in April
That reflects very strong growth in the construction sector, as well as more modest but still positive growth elsewhere
Services output grew 0.3% month-on-month
Construction output grew 1.9% month-on-month
Production grew 1.9% month-on-month
GDP had been expected to rise 0.2% month-on-month (Trading Economics)
Nicholas Hyett, Investment Manager, Wealth Club:
“The economy picked up pace in May, with overall growth twice what economists had expected.

The UK consumer looks to be in robust health, underpinning growth in retail and accommodation in May. Businesses attributed the strength in part to the warmest May on record, following an exceptionally wet April. After April’s washout the construction industry also enjoyed a strong month, with new housing and infrastructure output up 2.8% and 3.5% respectively. Both are priority areas for the new government – and this suggests decent foundations for the future.

Overall the UK economy looks like it went into the election in a pretty good state. However, increasingly volatile weather patterns have made for a bumpy ride recently, and that’s likely to continue going forwards in an economic environment that is already vulnerable to global macro shocks.”