May’s GDP Surprise: Construction Takes the Spotlight
The Office for National Statistics (ONS) just dropped the numbers: the UK economy grew 0.4 % month‑on‑month in May, after staying flat in April. Wet, dreary weather had kept shoppers at home, but the bright side is that construction is churning out its best beat in nearly a year.
Key Take‑aways
- Overall GDP: 0.4 % MoM increase
- Services: 0.3 % MoM growth
- Construction: 1.9 % MoM jump
- Production: 1.9 % MoM rise
What the Numbers Mean
Construction led the pack, climbing 1.9 % after a slow spell, thanks to a boom in both new housebuilding and infrastructure. Services followed with a modest 0.3 % bump, and production kept pace with the same 1.9 % gain.
Experts Chime In
Liz McKeown, ONS Director of Economic Statistics: “May was a solid month—all sectors saw up‑turns, with retailers and wholesalers bouncing back from a sluggish April.”
Rachel Reeves, Chancellor: “Customer growth is our national mission; we can’t afford to wait.”
Rob Wood, Pantheon Macroeconomics: “We’re past last year’s minor recession. The 1.5 % GDP push this year and a 3½ % YoY swing are the highest since January 2022. But those numbers feel a bit too good to be true—there’s a chance some correction is coming in June.”
Nicholas Hyett, Wealth Club: “The UK is picking up speed in May, with growth twice what economists predicted. Retail and accommodation enjoyed a strong month, buoyed by record warmth this May after a soggy April. Construction also saw a 2.8 % rise in new housing and 3.5 % in infrastructure. That’s policy‑friendly territory, suggesting a solid footing for the future.”
Feeling the Weather Craze
On balance, the economy is heading into election season in pretty good shape. Yet the march of capricious weather means we’ll probably keep experiencing some bumps. In a world already trembling under global macro shocks, the UK’s resilience is heartening but still a work in progress.
Want the latest updates directly to your phone? Consider signing up for real‑time alerts – just click “Subscribe” below!
