- UK May monthly GDP +0.1% vs +0.1% m/m expected
- Prior -0.1%
The more detailed breakdown for the month:
- Services output +0.3% vs +0.1% m/m expected
- Prior -0.2%; revised to -0.1%
- Industrial output -0.5% vs -0.1% m/m expected
- Prior 0.0%; revised to +0.2%
- Manufacturing output +0.1% vs -0.2% m/m expected
- Prior +0.4%; revised to +0.5%
- Construction output -0.8% vs -0.3% m/m expected
- Prior +0.1%; revised to -0.1%
The overall estimate points to marginal growth in the UK economy for the month of May, driven much by a rebound in the services sector for the most part. The three-month running monthly GDP estimate also shows a growth of 0.7%, beating the expected 0.5% growth estimate. However, that is just down slightly from the previous three months to April of 0.8% growth.
In any case, this still points to the UK economy somewhat holding up in Q2 so far despite the trials and tribulations from the US-Iran conflict and also domestic political woes.
Stagflation risks remain a concern but a bit less so with UK headline annual inflation dipping back under 3%. That being said, it’s still a high number and the US-Iran conflict now starting back up again will pose a threat to the outlook surely.
Growing fiscal worries and cost of living concerns will also be part of the picture, so there is that to keep in mind as well.
This article was written by Justin Low at investinglive.com.
