Indoor reopening drives economy

THE UK economy rebounded further in May following the latest easing of lockdown restrictions but recorded a slowdown in growth, new figures show.

The Office for National Statistics (ONS) said gross domestic product (GDP) - a measure of economic growth - grew by 0.8% in May, as it slowed from a 2.3% rise in April.

Analysts had predicted the economy would report a 1.5% increase for the month.

The ONS added that GDP has still not recovered to pre-pandemic levels, with the reading 3.1% lower than in February 2020.

May’s economic growth was largely driven by the services sector, which reported 0.9% growth after a raft of hospitality, leisure and arts firms were able to reopen due to the relaxation of restrictions on May 17.

The accommodation and food services sector was particularly buoyant, reporting a 37.1% improvement against April as customers returned to venues and booked domestic holidays again.

Jonathan Athow, deputy national statistician for economic statistics at the ONS, said: “The economy grew for the fourth consecutive month, albeit at a slower pace than seen recently, but remains around 3% below its pre-pandemic peak.

“Pubs and restaurants, who were again able to welcome indoor guests, were responsible for the vast majority of the growth seen in May. Hotels also saw a marked recovery as restrictions lifted.”

The figures revealed a return to growth for the production sector, at 0.8%, boosted by adverse May weather which drove higher output in electricity and gas.