Source: Office for National Statistics
The UK economy posted its fourth straight month of expansion in May, albeit slower than the previous month, as manufacturing output was dragged by the global chip shortage.
- The gross domestic product grew by 0.8% in May, slower than the 2.0% in April, and 3.1% below the pre-COVID-19 levels recorded in February 2020.
- Manufacturing output, specifically transport equipment, plunged by 16.5%. This is the biggest drop since April 2020 due to chip concerns that hit car production.
- The service sector posted the biggest growth at 0.9%, as the easing of quarantine restrictions drove accommodation and food service activities up 37.1%.
- Production output posted 0.8% growth, as inclement weather conditions brought electricity, gas, and air supply outputs higher.
- Construction contracted for the second straight month at -0.8%. It is the only sector above its pre-pandemic level, by 0.3%.