Thursday
August, 18

British Economy Recovered In May – Official

According to official figures released on Wednesday, the British economy recovered in May, allaying concerns about a downturn amid skyrocketing prices and rising interest rates.

The Office for National Statistics said that the gross domestic product increased by 0.5 percent, exceeding forecasts for no rise.

According to Darren Morgan, head of economic statistics for the ONS, “the economy recovered in May with growth across all major sectors.”

A recovery in manufacturing, services, and construction contributed to the overall comeback.

That came after an April decrease of 0.2 percent, which was previously reported as a contraction of 0.3 percent.

Morgan continued, “Health was the main factor, with many more people attending GPs despite the end of test and trace and the vaccination programs.

The pent-up demand for summer vacations helped travel companies do well, while road haulers also had a busy month.

After several difficult months, manufacturing had widespread growth, and construction also did well, with housebuilding and office renovations driving growth.

“Since December, the Bank of England has raised interest rates five times to rein in the inflation that has become out of control and caused a crisis in the cost of living in Britain.

According to the BoE, UK inflation is expected to reach double digits this year due to surging energy and food prices, which reached a 40-year high of 9.1% in May.

The economy is “resilient,” according to Capital Economics researcher Paul Dales, but there is still a persistent risk of recession because of skyrocketing consumer prices.

Dales stated that it is “far too soon to conclude that the economy would be able to emerge largely undamaged from this era of extremely high inflation.”

A recession is still a genuine concern because real household discretionary incomes are expected to decrease much more in the third quarter.

The positive figures from Wednesday were hailed by the UK government.

Finance Minister Nadhim Zahawi stated, “It’s always fantastic to see the economy growing, but I’m not complacent.”

“I realize people are worried, so we’re still supporting families and economic development,”

Zahawi is one of eight Conservative lawmakers trying to succeed scandal-plagued Boris Johnson as head of the Conservative Party, who resigned last week.

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According to official figures released on Wednesday, the British economy recovered in May, allaying concerns about a downturn amid skyrocketing prices and rising interest rates.

The Office for National Statistics said that the gross domestic product increased by 0.5 percent, exceeding forecasts for no rise.

According to Darren Morgan, head of economic statistics for the ONS, “the economy recovered in May with growth across all major sectors.”

A recovery in manufacturing, services, and construction contributed to the overall comeback.

That came after an April decrease of 0.2 percent, which was previously reported as a contraction of 0.3 percent.

Morgan continued, “Health was the main factor, with many more people attending GPs despite the end of test and trace and the vaccination programs.

The pent-up demand for summer vacations helped travel companies do well, while road haulers also had a busy month.

After several difficult months, manufacturing had widespread growth, and construction also did well, with housebuilding and office renovations driving growth.

“Since December, the Bank of England has raised interest rates five times to rein in the inflation that has become out of control and caused a crisis in the cost of living in Britain.

According to the BoE, UK inflation is expected to reach double digits this year due to surging energy and food prices, which reached a 40-year high of 9.1% in May.

The economy is “resilient,” according to Capital Economics researcher Paul Dales, but there is still a persistent risk of recession because of skyrocketing consumer prices.

Dales stated that it is “far too soon to conclude that the economy would be able to emerge largely undamaged from this era of extremely high inflation.”

A recession is still a genuine concern because real household discretionary incomes are expected to decrease much more in the third quarter.

The positive figures from Wednesday were hailed by the UK government.

Finance Minister Nadhim Zahawi stated, “It’s always fantastic to see the economy growing, but I’m not complacent.”

“I realize people are worried, so we’re still supporting families and economic development,”

Zahawi is one of eight Conservative lawmakers trying to succeed scandal-plagued Boris Johnson as head of the Conservative Party, who resigned last week.

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