“Economy rebounded in May with growth in all major sectors”
Official data showed that the British economy rebounded in May, ditching expectations that inflation will weigh on growth, although experts cautioned that this good news may not last.
Gross domestic product grew in May by 0.5%, the Office for National Statistics said in a statement, at a time when analysts had expected zero growth.
“The economy rebounded in May with growth across all major sectors,” said Darren Morgan, director of the Official Data Authority.
This strong progress was driven by a recovery in the construction, manufacturing and services sectors.
This indicator contrasts with data from April, when the economy contracted 0.2%, raising fears of a looming recession.
The Bank of England, the source, has raised interest rates five times since December in an effort to curb inflation, which affects the purchasing power of British households.
Inflation hit a 40-year high in May, with prices rising 9.1%, putting the index on track to reach a double-digit level due to higher energy and food prices, according to the Bank of England caution.
The British government cautiously celebrated the data on Wednesday.
“It is always good to see the economy grow, but we are not satisfied,” said Finance Minister Nadim Zahawi.
“I know people are concerned so we will continue to support families and economic growth,” he added.
Economists had expected the economy to stagnate in May and warned that GDP could contract in June, particularly in light of the extra holiday due to Queen Elizabeth II’s celebration of her jubilee.
Line: France Press agency
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