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The UK economy defied expectations and strengthened in May, figures on Wednesday showed, following a contraction in April.
According to the Office for National Statistics, UK gross domestic product grew 0.5% monthly in May, following a 0.2% decline in April. April's figure was upwardly revised from an initially reported 0.3% fall.
The figure for May topped FXStreet cited consensus which had forecast the economy to register no monthly growth at all.
‘Monthly GDP is now estimated to be 1.7% above its pre-coronavirus pandemic levels,’ the ONS said.
UK GDP rose 3.5% in the 12 months to May, slowing a touch from 3.7% annual growth in April.
The ONS added: ‘Services output grew by 0.4% [monthly] in May 2022 as human health and social work activities grew by 2.1%, mainly because of a large rise in GP appointments, which offset the continued scaling down of the NHS Test & Trace and Covid-19 vaccination programmes.’
The retail sector struggled, however.
‘Output in consumer-facing services fell by 0.1% in May 2022, driven by a 0.5% fall in retail trade, and non-consumer facing services grew by 0.5% in May, following a fall of 0.8% in April,’ the ONS added.
The latest GDP reading comes as UK leadership hopefuls jostle for position in the race to replace Prime Minister Boris Johnson.
Eight contenders will be on the ballot paper when Tory members of Parliament begin voting on Wednesday, the chair of the 1922 Committee, Graham Brady, said.
Rishi Sunak, Liz Truss, Tom Tugendhat, Kemi Badenoch, Penny Mordaunt, Jeremy Hunt, Nadhim Zahawi and Suella Braverman all secured the 20 nominations from fellow MPs needed to enter the contest.
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