UK economy grows marginally in May, driven by services sector bounce
UK May monthly GDP +0. 1% vs +0. 1% m/m expectedPrior -0. 1%The more detailed breakdown for the month:Services output +0. 3% vs +0. 1% m/m expectedPrior -0. 2%; revised to -0. 1%Industrial output -0. 5% vs -0. 1% m/m. . .
UK May monthly GDP +0. 1% vs +0. 1% m/m expectedPrior -0. 1%The more detailed breakdown for the month:Services output +0. 3% vs +0. 1% m/m expectedPrior -0. 2%; revised to -0. 1%Industrial output -0. 5% vs -0. 1% m/m expectedPrior 0. 0%; revised to +0. 2%Manufacturing output +0. 1% vs -0. 2% m/m expectedPrior +0. 4%; revised to +0. 5%Construction output -0. 8% vs -0. 3% m/m expectedPrior +0. 1%; revised to -0. 1%The overall estimate points to marginal growth in the UK economy for the month of May, driven much by a rebound in the services sector for the most part. The three-month running monthly GDP estimate also shows a growth of 0. 7%, beating the expected 0. 5% growth estimate. However, that is just down slightly from the previous three months to April of 0. 8% growth. In any case, this still points to the UK economy somewhat holding up in Q2 so far despite the trials and tribulations from the US-Iran conflict and also domestic political woes. Stagflation risks remain a concern but a bit less so with UK headline annual inflation dipping back under 3%. That being said, it's still a high number and the US-Iran conflict now starting back up again will pose a threat to the outlook surely. Growing fiscal worries and cost of living concerns will also be part of the picture, so there is that to keep in mind as well.