The U.K.’s monthly real gross domestic product (GDP) grew 0.4 percent in May 2024 after stagnating in April. In the three months to May, the country’s real GDP grew by 0.9 percent compared to the three months to February, driven by a 1.1 percent growth in services output.
The latest data from the Office for National Statistics (ONS) reveals that in May, construction output grew by 1.9 percent after declining by 1.1 percent in April, which supported the U.K.’s GDP growth.
Service sector propels growth
In addition, the services output grew by 0.3 percent, following growth of 0.3 percent in April, and was the largest contributor to the U.K.’s monthly GDP growth in May 2024. Overall, the ONS estimates that the services sector grew by 1.1 percent in the three months to May, marking the strongest three-monthly growth rate since December 2021.
Production output sees marginal rise
Meanwhile, production output grew by 0.2 percent following a fall of 0.9 percent in April and showed no growth in the three months to May 2024. Notably, manufacturing output grew by 0.4 percent in May and was the largest contributor to the growth in production output during the month, following a 1.6 percent decline in the previous month.
Read | U.K. manufacturing activity grows in June, input cost inflation at 17-month high: PMI
New house work drives construction growth
The U.K.’s GDP data reveals that construction output declined 0.7 percent in the three months to May. New work decreased by 0.9 percent over the same period while repair and maintenance fell by 0.3 percent. Within new work, the largest contributor to the fall came from public housing new work, which decreased by 10.3 percent.
However, eight out of the nine construction sectors saw monthly growth in May. The main contributors to the monthly rise were a 2.8 percent increase in new housing work, with both private and public new housing output increasing in May. Infrastructure new work rose by 3.5 percent and non-housing repair and maintenance grew by 2.1 percent in May.
For more economy news, click here.
