MNI DATA BRIEF: UK GDP Growth Slows In May

The UK recovery hit a speed bump in May, as output rose by just 0.8%, well below forecasts of a 1.5% expansion, the Office for National Statistics said Friday. That's the fourth straight increase, but well below the 2.0% pace set in April (downwardly revised from the initially-reported 2.3% rate). All categories of growth fell short of expectations, with the service sector expanding by just 0.9%, despite a 37.1% increase in accommodation and food services.

Manufacturing output slipped by 0.1%, well below forecasts of a 1.4% gain, dampened by a 16.5% plunge in transport equipment, as the global shortage of semiconductors hit car production lines. Construction output slumped by 0.8%, the second straight fall, dampened by rainy weather, as May was the fourth wettest month since 1862. On a rolling three-month basis, growth accelerated to 3.6%, the quickest pace since the three months to November of 2020. Output remains 3.1% below pre-pandemic levels.