UK economy expands in May

(Sharecast News) - The UK economy grew by 0.1% in May, official data showed on Thursday, in line with expectations. The country's dominant services sector drove the growth, rising 0.3% and helping to reverse April's 0.1% dip. It also offset weakness elsewhere in the economy, with production easing 0.5% and construction 0.8%.

Over the three months to May, GDP widened by 0.7%. That was ahead of expectations for a 0.5% improvement, although the pace of growth did slow slightly compared to the upwardly-revised 0.8% print recorded in the previous quarter.

Once again the services sector drove growth, jumping 0.7%, with computer programming and advertising faring particularly well. The ONS noted that the "often-volatile" pharmaceutical industry also showed solid growth. The construction sector also rebounded, rising 1.6%.

Liz McKeown, director of economic statistics at the ONS, said: "The economy recorded robust growth in the three months to May, though the pace eased slightly as the latest two months showed a weaker picture."

Ben Jones, senior lead economist at the Confederation of British Industry, said: "The pre-summer heatwave supported retail sales and probably provided a boost to some other consumer-facing sectors as well. But the broader sectoral picture was mixed, suggesting that the UK continues to struggle to build sustained momentum.

"Businesses remain cautious about the outlook of the rest of the year."