The UK economy grew faster than expected in May as retailers and the building industry enjoyed a strong month.
The economy expanded by 0.4%, the Office for National Statistics (ONS) said, rebounding from zero growth in April when wet weather put off shoppers and slowed down construction.
Construction expanded at the fastest rate in almost a year in May, with house building and infrastructure projects boosting the industry, the ONS said.
The question of how to increase growth in the UK’s economy was one of the key battlegrounds in the recent general election.
Liz McKeown, of the ONS, said that many retailers and wholesalers “had a good month, with both bouncing back from a weak April”.
The construction sector grew by 1.9% in the month.
The new Labour government has announced a number of measures this week aimed at improving growth.
Chancellor Rachel Reeves has said housebuilding targets will be reintroduced, planning restrictions will be overhauled and there will be an end to the effective ban on onshore wind farms in England.
A new National Wealth Fund has also been announced to attract investment in infrastructure and green industry.
Economists warn against placing too much weight on shifts in economic activity over one month because they can be affected by factors such as the weather.
In the three months to May 2024, gross domestic product – which measures the value of goods and services produced in a country over time – grew by 0.9% compared with the previous three months, the quickest pace for more than two years.
The ONS said this was helped by strong growth in the services sector – which includes businesses such as hairdressers and hospitality.
