MNI DATA IMPACT: Brexit-Related Auto Rebound Lifts UK GDP>

By Les Commons and Laurie Laird 

LONDON (MNI) - The UK economy rebounded in May, with April's 

Brexit-related plunge in auto production reversing in May. 

The following are the key points from UK GDP data published Wednesday by 

the Office for National Statistics.

     - Motor vehicle output jumped by a record 24%, almost countering 

the record-high 24% plunge recorded in April. Manufacturing provided the 

biggest lift to economic activity in May, adding 0.14 precentage points 

to total GDP growth of 0.3%. 

     - The May GDP outturn matched the MNI median forecast, but the 

rebound from a 0.4% plunge in April could keep the economy from 

contracting in Q2. Growth above 0.1% in June would lift GDP growth into 

the black for the latest three months.  

     - The Brexit-related volatility in the manufacturing sector has 

overshadowed a continued and deepening slowdown in financial services. 

The sector contracted by 0.2% in May, the 17th straight month of no 

growth, for a cumulative decline of 3.4%. 

     - The contraction in financial services can be traced back to 

January 2017, with only one month of growth recorded since -- in 

December 2017. The ONS said there has been a cumulative decline of 5.4% 

over the 29-month period.  

     - Services, long the engine of economic growth, failed to provide 

much of a lift in May, recording no change over April and contributing 

less than 0.1 percentage point to total growth over the past three 

months.

     - The trade deficit fell sharply in May, to Stg2.324 billion from 

an upwardly-revised Stg3.716 billion in April. That leaves trade on 

track to make a large positive contribution to Q2 GDP after subtracting 

a record-high 2.99 percent points from Q1 growth.

-London bureau: 44 (0) 203 865 3812; email: ukeditorial@marketnews.com

[TOPICS: M$B$$$,MABDS$]