GDP increases by 0.3% in May

GDP grew by 0.3% in May
UK GDP grew by 0.2% in the three months to May and increased by 0.3% in May
  • UK GDP grew by 0.2% in the three months to May
  • GDP growth driven by services, with falls in construction and production
  • GDP increased by 0.3% in May

The UK economy grew by 0.3% in May, despite a downturn in construction and production.

Publishing its first estimates for GDP on a monthly basis, the Office for National Statistics said GDP growth was largely driven by the services industry, which saw 0.4% growth in the three months to May.

The growth in the services industry was due in large part to the warmer weather and the Royal Wedding, resulting in more consumers spending.

Breakdown of GDP growth rates by month

Mar-18 Apr-18 May-18
GDP 0.0% 0.2% 0.3%
Index of Services 0.2% 0.4% 0.3%
Index of Production -0.3% -1.0% -0.4%
Construction -1.8% 0.0% 2.9%
Agriculture -0.2% 0.1% 0.2%
Source: Office for National Statistics

‘Modest growth driven by services sector’

Commenting on today’s GDP figures for the three months to May, Head of National Accounts Rob Kent-Smith said:

“The first of our new rolling estimates of GDP shows a mixed picture of the UK economy with modest growth driven by the services sector, partly offset by falling construction and industrial output.

“Retailing, computer programming and legal services all performed strongly in the three months to May while housebuilding and manufacturing both contracted.

Services, in particular, grew robustly in May with retailers enjoying a double boost from the warm weather and the royal wedding. Construction also saw a return to growth after a weak couple of months.”