UK economic growth slows in May

The UK’s economy grew by 0.8% in May as coronavirus restrictions eased to allow pubs and restaurants to serve indoors.

This marked the fourth consecutive month of growth, but it was a slower rate than analysts had expected.

It was also a slowdown from April, when the economy grew 2% as restrictions eased for non-essential retailers and hospitality firms could serve outside.

The economy is still 3.1% below pre-pandemic levels, the Office for National Statistics said.

“Of course, the pace of the recovery was always going to slow as the economy climbed back towards its pre-crisis level. But we hadn’t expected it to slow so much so soon,” said Paul Dales, an economist with Capital Economics.

Pubs and restaurants “were responsible for the vast majority of the growth seen in May”, said Jonathan Athow, ONS deputy national statistician for economic statistics.

“Hotels also saw a marked recovery as restrictions lifted,” he added.

Accommodation and food services grew by a massive 37.1% in May, with the overall services sector growing 0.9%.

But UK carmakers struggled with a shortage of microchips, while construction firms were hit by very wet weather in May as firms lost working days, the ONS said.

British Chambers of Commerce head of economics Suren Thiru said: “While the latest figures confirm the rebound in economic activity continued into May, the sharp slowdown in growth suggests that the recovery is losing a little steam as the temporary boost, from the earlier phases of reopening, fades.”

Looking ahead, Emma-Lou Montgomery, associate director at Fidelity International, said: “A sporting summer may not directly cause an ‘it’s coming home’ bounce, but the impact on consumer confidence can’t be ignored.

“That being said, there are many unknowns ahead. The UK is set on its roadmap to ‘freedom day’ but cases are rising, challenges in the labour market persist and the initial spending boom could slow in pace.”

Like this article? Share on

Facebook
Linkdin
Twitter
Telegram
WhatsApp

Related articles

Information about our own complaints process, raising concerns to the Legal Ombudsman and to us

We want to give you the best possible service. However, if at any point you become unhappy or concerned about the service we provided then you should inform us immediately, so that we can do our best to resolve the problem.

In the first instance it may be helpful to contact the person who is working on your case to discuss your concerns and we will do our best to resolve any issues at this stage. If you would like to make a formal complaint, then you can read our full complaints procedure here. Making a complaint will not affect how we handle your case.

The Solicitors Regulation Authority can help you if you are concerned about our behaviour. This could be for things like dishonesty, taking or losing your money or treating you unfairly because of your age, a disability or other characteristic. 

You can raise your concerns with the Solicitors Regulation Authority.

What do to if we cannot resolve your complaint

The Legal Ombudsman can help you if we are unable to resolve your complaint ourselves. They will look at your complaint independently and it will not affect how we handle your case.

Before accepting a complaint for investigation, the Legal Ombudsman will check that you have tried to resolve your complaint with us first. If you have, then you must take your complaint to the Legal Ombudsman:

  • Within six months of receiving our final response to your complaint; and,
  • Within one year of the date of the act or omission about which you are concerned; or
  • Within one year of you realising that there was a concern.

 

If you would like more information about the Legal Ombudsman, you can contact them at the following details:

 Contact details

This website uses cookies to ensure you get the best experience on our website. By closing this message, you consent to our cookies on this device in accordance with our cookie policy unless you have disabled them.