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Economic growth in the United Kingdom was 0.8% in May, down from 2% the previous month, causing average quarterly growth to miss at 3.6% rather than the median forecast of 3.9%. In terms of monthly growth, the 0.8% May rate was half of the 1.5% that most economists were expecting.
The economy remains roughly 3% smaller than when the COVID-19 pandemic hit in early 2020.
Accommodation and food services led the way with 37.1% month-on-month, powered by an easing of COVID-19 restrictions. Overall, the service sector grew by 0.9% in May.
Manufacturing and construction on the other hand were dragged down by a lack of critical inputs. Transport equipment fell by 16.5% on global chip shortages, and construction shrunk by 0.8%, the second consecutive monthly contraction, due in large part to shortages of steel and timber.
The post SNAPSHOT: UK Growth Surprises on Downside appeared first on Geopolitical Monitor.
