Chancellor Rachel Reeves has emphasized that driving economic growth is Labour’s top priority. The UK economy saw a rebound in May, with growth reported in services, retail, and construction sectors, according to the Office of National Statistics (ONS). Monthly GDP increased by 0.4 percent in May after a stagnant April due to unfavorable weather conditions. All three main sectors contributed positively to GDP growth, with services up by 0.3 percent, production by 0.2 percent, and construction by 1.9 percent.
The ONS noted that the timing of bank holidays can impact GDP estimates, and economic growth was recorded over the past three months. Liz McKeown, director of economic statistics at the ONS, mentioned that the increase in May was the quickest pace in over two years, despite weaker performance in construction.
The Labour government, under the leadership of Chancellor Rachel Reeves, is focused on delivering growth and strengthening the economy’s foundations. The government plans to “get Britain building again” by constructing 1.5 million new homes and implementing measures to boost economic growth. The National Wealth Fund, a manifesto pledge, aims to attract private sector investment and kickstart economic growth.
Looking ahead, the Bank of England’s Monetary Policy Committee is expected to meet to set the interest rate, with economists anticipating a potential rate cut. However, stronger-than-expected growth may delay the rate cut until September. Despite the positive GDP figures, economists caution that there may be some adjustments in the coming months.
Overall, the UK economy is showing signs of recovery, with growth reaching levels not seen since early 2022. While there is optimism about the economic outlook, experts suggest that caution should be exercised due to the possibility of adjustments in the future. Please rewrite this phrase.
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