The latest data from the Office for National Statistics has shown growth in the UK economy.
Warm weather and the royal wedding led to the UK economy growing by 0.3 percent, up from a 0.2 per cent rate in April.
The latest figures are the first in the new change for how the UK’s GDP is calculated. Rather than new data released every three months, the ONS will now release a monthly indicator and a rolling three-month figure.
Rob Kent-Smith, the ONS’s head of national accounts, said: “The first of our new rolling estimates of GDP shows a mixed picture of the UK economy with modest growth driven by the services sector, partly offset by falling construction and industrial output.”
“Retailing, computer programming and legal services all performed strongly in the three months to May, while housebuilding and manufacturing both contracted.”
“Services, in particular, grew robustly in May, with retailers enjoying a double boost from the warm weather and the royal wedding. Construction also saw a return to growth after a weak couple of months,” he added.
Construction increased by 2.9 percent, compared to steep falls in the first quarter. Manufacturing grew by 0.4 percent and services by 0.3 percent.
“The long-awaited bounce-back from a weak first quarter has failed to materialise, with the rolling three-month growth rate unchanged into May,” said Deloitte’s chief economist, Ian Stewart.
“When we get the full picture for second-quarter growth, we’re likely to see a slight pick-up, as a result of stronger growth in retail, manufacturing and services in June.”
“However, the fact that first-half growth is set to be below trend hardly makes a compelling case for an August rate rise.”
The ONS has also reported that UK trade deficit has increased to £8.3 billion in the three months to May. This is up by £5 billion from the previous quarter.