UK Economy Returns to Growth

UK gross domestic product (GDP) grew by 0.3% in the three months to May 2019 following the fall seen in April.

Both the services and production sectors grew by 0.3% in the three months to May 2019, contributing positively to headline GDP growth. However, construction growth was flat over the same period, with zero contribution.

The main contributors to services growth in May 2019 were retail trade, and information and communication. Despite these industries performing well in recent periods, there has been a notable slowdown in services growth since July 2018.

Production grew by 1.4% in May 2019, following a fall of 2.9% in April 2019. Within production, manufacturing grew by 1.4%. This was driven largely by a pick-up in the manufacture of transport equipment, following several car firms shutting down production around the originally intended departure date from the European Union. Despite this rebound, the levels of output in this industry are below those seen in the months prior to April 2019. Elsewhere, mining and quarrying grew by 0.4% following a sharp fall in April 2019.

Article courtesy of LLB.