UK economy beats expectation as it grows by 0.4% in May

Boost for new Labour government

Linus Uhlig
clock • 2 min read

The UK’s economy grew by 0.4% in May, following a month of no growth in April, according to data from the Office for National Statistics.

Much of the growth was driven by a maintained uptick in services output, which grew by 0.3% in May, the same as in April. Markets welcome reduced political risk premium on UK assets after Labour win This broad trend was reflected widely in the ONS' report, which showed that real terms GDP increased by 0.9% in the three months to May 2024, compared with the three-month period to February 2024, a result of a growth of 1.1% in services output. The 0.9% figure marks the fastest growth since January 2022. Growth was "stronger than expected" in May, noted Quilter Investors' Lindsay Ja...

To continue reading this article...

Join Investment Week for free

  • Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
  • Get ahead of regulatory and technological changes affecting fund management
  • Important and breaking news stories selected by the editors delivered straight to your inbox each day
  • Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
  • Be the first to hear about our extensive events schedule and awards programmes

Join now

 

Already an Investment Week
member?

Login

More on UK

Cost of Labour Force Survey revamp nearly doubles in a year to £40.4m
UK

Cost of Labour Force Survey revamp nearly doubles in a year to £40.4m

From £24.1m earlier estimate

Cristian Angeloni
clock 20 January 2025 • 2 min read
Reeves to host meetings with financial services heavyweights over sector and UK growth plans
UK

Reeves to host meetings with financial services heavyweights over sector and UK growth plans

First meetings in January and February

Sorin Dojan
clock 20 January 2025 • 1 min read
IMF upgrades UK economic outlook to become 'fastest growing' major economy in Europe
UK

IMF upgrades UK economic outlook to become 'fastest growing' major economy in Europe

Reeves promises ‘relentless reform’

Cristian Angeloni
clock 17 January 2025 • 2 min read
Trustpilot