The UK economy fought back grew by 1.8 per cent in May as activity began to recover with the easing of coronavirus lockdown but remained a quarter below its pre-pandemic levels.
The Office for National Statistics (ONS) said the economy managed some growth as manufacturing and housebuilding showed signs of recovery after restrictions began to be lifted in May.
However, it is far short of the five per cent rise expected by most economists.
Despite the month-on-month increase in gross domestic product (GDP), output is still a long way from recovering from the record falls seen in March and April when the country was in full lockdown – and was 24.5 per cent lower compared with February before the crisis struck.
Jonathan Athow, deputy national statistician at the Office for National Statistics (ONS), said: “Manufacturing and house-building showed signs of recovery as some businesses saw staff return to work.
“Despite this, the economy was still a quarter smaller in May than in February, before the full effects of the pandemic struck.
“In the important services sector we saw some pick-up in retail, which saw record online sales.
“However, with lockdown restrictions remaining in place, many other services remained in the doldrums, with a number of areas seeing further declines.”
The ONS said GDP plummeted 19.1 per cent in the quarter to May after it shrank at a record-breaking pace in March and April when the economy was brought to a virtual standstill, falling by a downwardly revised 6.9 per cent and 20.3 per cent respectively.
Data showed the all-important services sector expanded by 0.9 per cent in May, while manufacturing rose 8.4 per cent and construction by 8.2 per cent as factories and building sites opened again.
But the three-month figures reveal output in the services sector – which accounts for three-quarters of UK GDP – still 24.4 per cent below levels seen before the pandemic.
Experts believe June and July’s GDP data should show a bigger bounce back.
But Samuel Tombs at Pantheon Macroeconomics cautioned: “More recent data suggest that the reopening of the consumer services sector in July has got off to a sluggish start, with customers at restaurants, pubs and cinemas small fractions of pre-Covid levels.
“We think that GDP still will be about five per cent below its pre-Covid level by the end of this year.”
