May GDP growth falls short of predictions despite hospitality and retail increase

The UK economy saw slower growth than anticipated in May according to new figures.

The Office for National Statistics (ONS) has published its latest information on the UK economy, showing a 0.8 per cent growth in May.

The figure was just over half of the 1.5 per cent growth predicted by economists, and was lower than the 2 per cent growth seen in April.

The economy remains 3.1 per cent below its pre-pandemic peak, however in May consumer facing services such as retail and hospitality recovered to their highest level since the start of the pandemic with a 3.2 per cent increase.

BCC head of economics, Suren Thiru, commented: “While the latest figures confirm the rebound in economic activity continued into May, the sharp slowdown in growth suggests that the recovery is losing a little steam as the temporary boost, from the earlier phases of reopening, fades.

“The  increase in activity largely reflects a notable pick-up in output from pubs, restaurants and accommodation services, spurred by the easing of restrictions in the month, including  the restart of  indoor dining.