The UK economy returned to growth in May, but expansion was muted amid price pressures due to the Iran war, official figures from the Office for National Statistics (ONS) have shown.
GDP Growth Details
Gross domestic product (GDP) rose by 0.1% in May, following a 0.1% contraction in April, the ONS reported. The meagre growth in May came after expansion of 0.3% in the all-important services sector, which was partly offset by falls of 0.5% in production and 0.8% in construction.
Broader Economic Trends
Growth has been pulling back sharply after a much better-than-expected start to the year. The ONS recorded growth of 0.3% in March before the April contraction, which was the first fall for eight months. This was seen as a sign that the Iran war was beginning to take its toll on the economy.
In the three months to May, GDP rose 0.7% after upwardly revised growth of 0.8% in the three months to April.
Official Commentary
Liz McKeown, ONS director of economic statistics, said: “While all three main sectors grew over the three months, the slight growth in GDP in May was driven by services alone, with production and construction both falling back.”
