Economic growth exceeds expectations during May – Chamber

Business leaders today said the new Government must use quicker-than-expected economic growth as a “springboard” after data revealed GDP exceeded expectations during May.

The UK economy grew faster than expected in May as more shoppers returned to the high streets and construction work recovered, according to the Office for National Statistics.

The ONS said GDP increased by 0.4 per cent, exceeding expectations of 0.2 per cent growth.

In April, GDP flatlined after a 0.4 per cent month-on-month rise in March due to wetter weather, the ONS said.

Raj Kandola (pictured), director of external affairs at Greater Birmingham Chambers of Commerce, said: “This morning's GDP results for May exceeded expectations as the UK economy returned to growth following a damp April.

“Economic activity has picked up noticeably since the start of the year and England's run at Euro 2024 should drive further levels of consumer spending throughout the summer.

“However, as early analysis from our Quarterly Business Report reveals, firms are still facing inherent cost pressures particularly related to hiring staff.

“The new Government must use this headwind to create a springboard for growth - unlocking investment, removing red tape around planning, investing in training and harnessing AI to drive productivity gains will all help to drive these ambitions.”

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