span>span>Thursday 11th July 2024/span>span> - 08:22 (BST)/span>/span>
The British economy showed a promising upturn in May, growing by 0.4% after a stagnant April and outpacing the predicted 0.2% rise. This improvement was fuelled by a resurgence in retail and wholesale sectors, which recovered from a sluggish April. The construction industry also saw its fastest growth in nearly a year, thanks to a boost from house building and infrastructure projects, according to Liz McKeown, the ONS director of economic statistics.
The services sector, which includes everything from retail to professional services, grew by 0.3%, matching April's performance and continuing to be the main driver of economic growth. Notably, the retail trade sector (excluding motor vehicles and motorcycles) jumped by 2.9%, while professional, scientific, and technical activities saw a 1% increase.
Industrial production edged up by 0.2%, a welcome recovery from April's 0.9% decline, largely due to a 0.4% rise in manufacturing. Within manufacturing, food products, beverages, and tobacco saw a notable 1.7% increase.
Construction output made a significant comeback, expanding by 1.9% after a 1.1% drop in April. This growth was supported by increases in both new construction projects (up 2.7%) and repair and maintenance work (up 0.8%).
The latest positive news, along with Labours landslide election victory last week, has helped push GBP over 1% higher against most major currencies. The current trend suggests key technical levels against both USD and EUR will be tested in the coming weeks as wider market optimism take hold.
