UK economy gathers momentum in May

(Sharecast News) - The UK economy grew by more than expected in May, official data released on Thursday showed. According to Office for National Statistics, monthly real GDP was estimated to have grown by 0.4% in May, having shown no growth in April.

Analysts had been expecting a 0.2% uptick.

Leading the improvement was the construction sector, which grew at its fastest rate in almost a year. It reversed April's 1.1% slide - when wet weather hit activity - with a 1.9% uplift.

Production output also improved, however, nudging up 0.2% following a 0.9% decline a month earlier.

Services growth was unchanged at 0.3%.

In the three months to May, GDP rose by 0.9%, driven by a 1.1% uplift in services output. It was the quickest pace of growth for over two years, the ONS noted.

Liz McKeown, director of economic statistics at the ONS, said: "The economy grew strongly in May, with all three 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 house building and infrastructure projects boosting the industry."

Growth in manufacturing was led by food and drink firms, McKeown added.