UK economy returns to growth in May

The UK economy returned to growth in May, with GDP rising 0.4% month-on-month, according to official data from the Office for National Statistics. This follows a 0.1% contraction in April, which had been partly attributed to wet weather. The services sector drove the expansion, with strong performance in retail and hospitality. Manufacturing also contributed, though construction output fell. The data provides a modest boost for the government ahead of the upcoming general election, as it seeks to demonstrate economic recovery. Chancellor Jeremy Hunt welcomed the figures, while opposition parties noted that overall growth remains sluggish.

Global Impact

The UK's return to growth is a positive signal for the broader European economy, as it suggests consumer demand is resilient despite high interest rates. However, the impact is limited to the UK and does not alter the global macroeconomic outlook.