Economic rebound 'better than the forecast'

Pent up demand for health services and holidays saw the economy stage a better-thanexpected rebound – offsetting a cost-of-living hit to spending in shops, according to official figures.

The Office for National Statistics (ONS) said gross domestic product (GDP) grew by 0.5%inMay–reboundingfrom a 0.2% drop in April.

The growth came in all threemainsectorsoftheeconomy - services, manufacturing andconstruction-witharisein visits to GPs helping counteract the impact of the Government scaling back its Covid Test and Trace programme.

TheONSalsosaidgrowthin the services sector was boosted as summer holidays were firmlybackontheagenda,with output in the travel industry surging by 11%.

Darren Morgan, director for economic statistics at the ONS, said: "Health was the biggest driver, with many more peopleseeingGPs,despiteTest and Trace and the vaccination programmes winding down.

"Road hauliers also had a busymonth,whiletravelagenciesfaredwellwithpent-updemand 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."

Newly-appointed Chancellor

Nadhim Zahawi said that, despite May's better-thanforecast figure, he is not "complacent" about the economic challenges as inflation rocketed to 40-year high.

He said: "I know people are concerned so we are continuingtosupportfamiliesandeconomic growth.

"We're working alongside the Bank of England to bear downoninflationandIamconfident we can create a stronger economy for everyone."