UK economy grows by 0.5% in May as travel surge and GP visits aid rebound amid cost of living crisis

The UK economy grew by 0.5% in May after a decline of 0.2% in April, new figures show.

The Office for National Statistics (ONS) said the rise in gross domestic product (GDP) came after a bounce back across all three main sectors of the economy – services, manufacturing and construction.

Services output also rose by 0.4% in May, as human health and social work activities grew by 2.1%.

The ONS said this was due to a “large rise in GP appointments” in May, which offset the scaling down of the NHS test and trace and Covid-19 vaccination programmes.

What do the official figures show?

The UK economy has grown 0.5% in May, following April’s 0.2% decline (revised from a 0.3% drop), with growth fuelled by a boom in holiday bookings and a rise in GP appointments.

Over the three months to May, GDP rose 0.4%, according to figures from the ONS. This is despite economists expecting zero growth in May alone, and in the three months to May, due to the cost of living crisis.

Monthly GDP is now estimated to be 1.7% above its pre-coronavirus pandemic levels.

Production also grew by 0.9% in May, driven by 1.4% growth in manufacturing and a 0.3% rise in electricity, gas, steam and air conditioning supply.

Construction output increased by 1.5% in May and is now at its highest level since monthly records began in 2010.

Services grew by 0.4% in May 2022 and was the largest contributor to GDP growth - following a fall of 0.2% in April.

Human health and social work activities also increased by 2.1% in May - mainly driven by a large rise (15%) in GP appointments in England. However, consumer-facing services fell by 0.1% , caused by a drop in retail trade including motor vehicle and motorcycle repair services.

Consumer-facing services refers to retail trade, food and beverage serving activities, travel and transport, and entertainment and recreation.

Darren Morgan, director for economic statistics at the ONS, said: “The economy rebounded in May with growth across all main sectors.

“Health was the biggest driver, with many more people seeing GPs, despite test and trace and the vaccination programmes winding down.

“Road hauliers also had a busy month while travel agencies fared well with pent-up demand for summer holidays.

“There was widespread growth across manufacturing after several tough months while construction also fared well with housebuilding and office refurbishment driving growth.”

New Chancellor Nadhim Zahawi said it is “always great to see the economy growing” but “I’m not complacent.”

He added: “I know people are concerned, so we are continuing to support families and economic growth.

“We’re working alongside the Bank of England to bear down on inflation and I am confident we can create a stronger economy for everyone across the UK.”