Economy grows 0.8% in May

The UK economy grew by 0.8% in May – the fourth consecutive month of growth.

New figures from the Office of National Statistics saw a large surge in the services industry.

The accommodation and food service sector increased by 37.1% as restrictions eased in May.

“Economic growth was boosted by the gradual further lifting of restrictions, including indoor dining and sporting events,” said the chief investment officer private banking and wealth management at HSBC, Willem Sels.

“UK services are getting the biggest boost from the reopening, as consumers are eager to get back to normal. The savings ratio has been twice as high than the historical average for 12 months now, and we believe consumers will want to spend some of the savings accumulated during lockdowns.”

Construction fell 0.8% in May.

“Bottlenecks are already starting to emerge across various sectors – from labour shortages to supply chain pressures – as a result of the speed at which many are keen to reopen,” said Yael Selfin, a chief economist at KPMG UK.